Verizon Communications Inc. is seeking to buy out the blogging website, Tumblr so that it can reach its target revenues. Currently, Yahoo owns this website and they have been struggling to generate meaningful revenue from it. Originally Yahoo bought Tumblr for $1.1 billion and now this site is only worth $230 million. Verizon is hoping to obtain this website so they can gain more revenue from another platform, as well as earn more recognition and customers from doing so.
I believe that Verizon is making an advantageous decision buying out Tumblr because it will increase their exposure and audience. They will make changes to the website that will bring in a variety of users, which will lead to many more ad sales. Tumblr has over 400 million blog posts so a great audience is already exposed to it. If Verizon is able to increase the number of users, then the target revenue not only for Tumblr but Verizon as well will increase substantially.
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