Working culture differences and management distress abated the associated Yahoo and Tumblr Acquisition…
In this current scenario of blogging and expressing one’s view in a customised manner has been now ascertained on to platform called as the social networking.It was in the year 2007 that a similar social networking site named tumblr came into existence. Tumblr was created by a then dropout and former CEO of tumblr David Kurp.
This portal enabled the users to use the dashboard interface so as to make the best of tumblelogs which are nothing but the blog for short content posted on tumblr.
But the story-line took another level when the tumblr site was being acknowledged by the CEO of Yahoo and interest was put forth for the acquisition.Ever since Yahoo witnessed the rise of various social media portals such as twitter, snap chat, Instagram it was then considering the same that they showed an inclination towards tumblr acquisition.
As of 2013 when this acquisition was taken into consideration tumblr had employed 135 employees and claimed 108 million blogs that have been read by 44 million US citizens alone and about 134 million people across the world.
Unsuccessful consolidation of the sales division
Of all the manifestations which held as a part of the acquisition of Yahoo and tumblr the most prominent and the notable effect was of the fact that there was unsuccessful Sales force unification which lead to cause unrest in the employee set of the organisation.
Yahoo surely wanted to draw the attention from the competitive market, and as of acquisition they wanted to come together with the aim to create the advertisement opportunity to reach next level in which the user interface was accompanied with a rich experience of both the two organisation subordinated as established and emerging in nature.
The decision was indeed seen to be made without any reflection of the forecasted perspective of future consequences and implications as of how this major rearrangement could prove to be beneficial for the conglomerate.
This integration happened to be drastically flop to an extent as of which it is being cited that mismanagement is the foremost cause for the devastating effect which was seen as of the acquisition of Yahoo and tumblr.
Mismatched work culture
Many a time it is being often cited that tumblr had its own unique work culture which did not match to that of Yahoo as a result of which no structured framework was ascertained for the prior planning and developing strategies to work on a similar base line for the two organisations.
Even the earlier merger of the two marketing team caused nothing but concluded with par struggle and trust issues and the teams were then lead without proper guidance and leadership.
Radical alteration in the managing functionaries
As of 2015 though Yahoo was doing quite well in terms of it at promotion activity and stipulated innovative but at the same time it also had those few major competitive environment sprawling aside which made the sale pressure to enhance as an outcome of which the sales grew team grew roughly from 18 to 80 leading to project an even more complicated situation.
As a reflex to this mismanagement distress Brown who was the then head of a tumblr sales team left the organisation in February 2015. One of the major learning of this instance of acquisition Failure was that whenever two companies come to work together it’s very important that they respect the company culture of one another.
Distinct aimed audience targets
Another area of regard which could be accounted for the fact that Yahoo and tumblr could not work in a collaborative manner is that they both had different standpoint inclination towards the audience.
As per their preset vision, On one hand Yahoo believed in the conventional and the traditional approach of advertisement while tumblr believed in targeting the more younger audiences, this divergent nature of interest at working platform also lead to a variation in content delivery which was contrasting in nature as what content was intended to deliver and what the actual content was delivered.
Integration was complete failures because the responsibilities of the targeted people of the two companies were never fixed and were never tired well in terms of culture, in terms of customers they were never seamless with any of the prospects.
Plausible grounds for the collapsed consolidation of tumblr into yahoo.
Firstly, inadequate innovation was seen ever since the two organisations had collaborated, no innovative product delivery advertisement was seen at that point of time as was expected. Not only this, tumblr was highly organised to work on the enabled formats of sponsored videos and home base task which was not aimed efficiently by Yahoo.
Secondly, most of the times the shortcomings of the venture were overseen as depicted from one of the earning call of Marissa Mayer where she said that “it’s true that tumblr has not been able to meet the revenues as per which were supposed to be forecasted.. But for this time being the main focus of tumblr remains to incline towards the high and ambient growth of user interface. But to everyone’s astonishment she made this statement while she was quoting about the 230 million dollar loses over its value post acquisition.
The trajectory fall of tumblr was steered due to some undue decision
As of 2016 Yahoo announced that about 482 million USD impairment have been cost to them because of the downfall of tumblr and this was the second time that Yahoo was writing of a figure value or numerical value for the downfall.
At the time of purchase tumblr had a Goodwill of about USD 750 million dollars but today it has gone down to and lost over 80% of the price which yahoo have paid to Tumblr
While having discuss s about this acquisition failure it can also be cited that the CEO of Yahoo Marissa has been much of a strategic risk decision maker to turn the company around and involve those risk which would have been implemented well if discussed over the forecasted ground of possibilities and assertions, that too assisted with a background end plan..
It is often being repeated then it becomes hard for an organisation like Yahoo to take decisions impulsively Both the organisation were customer oriented for user interface and aimed innovation in their own path, but the major problems which arose with the established firm is that the trajectory map of division went downward because they wanted to find new application, new market for those new products which exhibited no relevance as they appeared to be of parallel domain.