Yahoo! (NASDAQ:YHOO) undoubtedly paid a hefty fee to acquire Tumblr. The company must have some very good plans of what exactly to do with the microblogging service. While Yahoo! has made it very clear that it wants to keep Tumblr operating independently, it's less clear how Tumblr will help Yahoo!.
In the video below, Fool contributor Daniel Sparks explains several ways Tumblr may benefit Yahoo!.
Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.