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1 Hidden Advantage for Yahoo in Its Tumblr Deal

Tamara Rutter
May 20, 2013

Yahoo! (NASDAQ: YHOO) started the week on a high note, after news broke over the weekend that the Internet giant would acquire Tumblr in a deal valued at $1.1 billion. The all-cash acquisition is a big win for the social blog site, but what does it mean for Yahoo!? The obvious advantages to Yahoo! include a high-growth business that's rooted in social and mobile, Tumblr's 100 million users, and a potential to boost advertising revenue.

On top of this, Yahoo! expects the acquisition to increase its audience by about 50% and online traffic by as much as 20%. On the mobile front, Yahoo! CEO Marissa Mayer points out that more than half of Tumblr's members are now using its mobile app multiple times per day. These are all good things for Yahoo!. However, there's something else at play here as well, and it could be key to Yahoo!'s future success.

Yahoo!'s return to relevance
What I'm referring to is data. Yahoo!'s decision to purchase Tumblr puts data from millions of users -- a