Saturday, January 20, 2018
Business

Yahoo can't decide whether it's a media company or a tech company

Yahoo's acquisition of Tumblr for $1.1 billion is a big gamble by Marissa Mayer, the company's recently hired CEO. The microblogging site is a valuable asset, but media accounts of Mayer's thinking suggest she hasn't come to terms with Yahoo's fundamental dysfunction: that it can't decide whether it's a media company or a technology company.

The most successful software companies, including Microsoft (in its prime), Google and Facebook, have focused obsessively on recruiting the best programmers. In contrast, even in its early days, Yahoo viewed content as a generic commodity to be packaged and resold to advertisers.

That ambivalent attitude toward technology was one reason Yahoo lost its dominance of the search market early in the last decade. And it explains why Yahoo failed to capitalize on the early popularity of Flickr, which Yahoo acquired in 2005 and has done little to improve since then.

Hiring Mayer away from Google was supposed to rejuvenate the company. Yahoo's board hoped Mayer, a computer programmer who had been immersed in Google's hacker-centric culture for more than a decade, would bring some of Google's cultural strengths with her to Sunnyvale.

But media reports of Mayer's thinking about the Tumblr acquisition suggest that Yahoo's culture may be rubbing off on Mayer more than vice versa. According to AllThingsD, which broke the news of the transaction over the weekend, Mayer became interested in Tumblr because it was "just the kind of property that Yahoo needed to make it both 'cool' and relevant to new consumers."

This is media company thinking. Media companies build brands by associating themselves with hot cultural trends. Because these trends are fickle, media companies can't do much more than observe which way the crowd is moving and race to get in front of it.

In contrast, technology firms build strong brands by creating technology that is objectively superior to other products on the market — for everyone.

Tumblr's current "cool" factor is a reflection of the fact that it's the best product on the market for a certain style of blogging. If it can maintain that technological edge, it's likely to continue growing. If it stagnates technologically, then its popularity will atrophy, as has happened with Flickr and del.icio.us.

Mayer says she will give founder David Karp autonomy to continue operating Tumblr as an independent entity. That's probably wise, as it will avoid smothering the company in Yahoo's bureaucratic culture. But that may be easier said than done. Part of Tumblr's charm is its minimalist design and simple user interface. Yet part of Mayer's argument for the acquisition is that Tumblr can benefit from integration into Yahoo's personalization, search and advertising platforms.

The much bigger challenge would be to transform Yahoo itself into a company that takes technology seriously. In her news release announcing the merger, Mayer wrote that "Yahoo is the Internet's original media network. Tumblr is the Internet's fastest-growing media frenzy. Both companies are homes for brands." Mayer's vision of Yahoo as a media network and a "home for brands" suggests Yahoo won't be producing great software products like Tumblr anytime soon.

Comments
Tampa Bay jobs chief Ed Peachey making top dollar

Tampa Bay jobs chief Ed Peachey making top dollar

For years, Edward Peachey has bragged about the number of jobless people he has helped find work.As president and CEO of CareerSource Pinellas and CareerSource Tampa Bay, he’s in charge of the two main government agencies that provide training to the...
Updated: 6 hours ago
Inspector General launches investigation into Tampa Bay’s local career centers

Inspector General launches investigation into Tampa Bay’s local career centers

The state has opened an investigation into CareerSource Pinellas and CareerSource Tampa Bay, days after the Tampa Bay Times asked about whether the two regional job centers were inflating the number of people they had helped get hired. The agencies, ...
Published: 01/19/18
Tech firm TranferWise moves to Ybor City, illustrating a new chapter in Tampa’s business history

Tech firm TranferWise moves to Ybor City, illustrating a new chapter in Tampa’s business history

TAMPA — You could sketch an economic history of the city of Tampa — and maybe get a glimpse of its future — just by looking at the old J. Seidenberg & Co./Havana-American Cigar Factory.It opened in 1894, making it Ybor City’s second-oldest brick ciga...
Published: 01/19/18

Want to buy into an exchanged-traded bitcoin fund? You might have a long wait

NEW YORK — It may be a while, if ever, before investors can buy an exchange-traded fund made up of bitcoin and other digital currencies. Federal regulators have a long list of questions they want answered before they’ll approve a digital currency fun...
Published: 01/19/18
Child psychologist weighs in on mom who charges 5-year-old ‘rent’

Child psychologist weighs in on mom who charges 5-year-old ‘rent’

A Georgia mother has gone viral for charging her 5-year-old "rent." Yup — the kid pays up for food, water, cable and electric, too.Essense Evans described in a Facebook post how she handles her daughter’s allowance. The post, written on Saturday, was...
Published: 01/19/18

Addicted to your smartphone? Now there’s an app for that

Did you text? Sorry, I can’t see messages right now. Arianna Huffington locked my phone.The media tycoon turned wellness entrepreneur wants to keep you out of your phone, too, with a new app called Thrive. Its goal is to make it cool for a generation...
Published: 01/19/18
Proposed monument near St. Pete pier would honor Tony Jannus history-making flight

Proposed monument near St. Pete pier would honor Tony Jannus history-making flight

ST. PETERSBURG — Tony Jannus’s history-making flight in an early seaplane — simultaneously as ungainly and graceful as a pelican on the wing — is what Mayor Rick Kriseman calls an "under-told and under-appreciated" story, but a team of local history ...
Published: 01/19/18
Learn how bus rapid transit (and rail) could work in Tampa Bay

Learn how bus rapid transit (and rail) could work in Tampa Bay

ST. PETERSBURG — The newest hope for transportation in the Tampa Bay area is a bus rapid transit system projected to cover the 41-miles separating St. Petersburg from Wesley Chapel and attract 4,500 new riders at a fraction of the cost of light rail....
Published: 01/19/18
Five things Tampa Bay needs to know about bus rapid transit

Five things Tampa Bay needs to know about bus rapid transit

ST. PETERSBURG — Transportation planners on Friday unveiled a new transit vision for Tampa Bay leaders on Friday morning: Bus rapid transit.Also known as BRT, it has arisen as the leading option in an ongoing study to find the best regional transit p...
Published: 01/19/18
Amazon boosts monthly Prime membership fees by 20 percent

Amazon boosts monthly Prime membership fees by 20 percent

NEW YORK — Amazon is raising the price of its Prime membership monthly plan by nearly 20 percent. The fee of $99 for an annual membership will not change, the company said Friday. The online retailer had added the monthly payment option about two yea...
Published: 01/19/18