In the mid-90s, the pop band Barenaked Ladies sang out
scenarios for their fantasy, "If I had a million dollars." Today, in
Silicon Valley and due north in Redmond we have a new version playing out where
Yahoo, Facebook and Microsoft are all figuring out what they would spend a
billion on. While the targets -- Tumblr, Waze and Nook -- make for fascinating
discussion of fit and valuation on their own, together they show something
interesting about the future of these goliaths beyond the personal computer.
They're looking well beyond the personal computer, but in different ways. After several small acqui-hires, Yahoo has finally swung for
the fences with a billion dollar acquisition of Tumblr. Tumblr is a
microblogging and social network site, and its audience is decidedly
un-Yahoo-like. Consider, too, that Yahoo has just announced a move toward
native advertising on its sacred home page. Giving the Yahoo sales force more
inventory and the ability to blend content between the Tumblr network and Yahoo
properties might be a highly valuable combo for consumers and advertisers
alike.
