By Tracie Powell, DJTF VP of Policy
Yahoo’s $1 billion purchase of the blogging site, Tumblr, is being heralded as a cool move by media watchers everywhere. It’s cool because the alliance brings in younger users to an aging Internet giant, a demographic advertisers crave, which translates into growing revenue—something legacy news media companies need.
Angel Investor and entrepreneur Jason Calacanis wrote for LinkedIn over the weekend that the then-pending deal had journalists livid. “Journalists are one of the first groups to lash out. Why? Because they have no chance of making big money in their jobs, and they have to fight for $5,000 raises while their pensions are replaced with 401ks. Also, they tend to have covered startups like Tumblr from year one and they can’t reconcile how something that didn’t exists five years ago is now worth $1 billion — and that they don’t have to balls to create something.”
I agree with Calacanis that the big-media purchase has many journalists more than a little bit jealous. But not because of our dwindling paychecks, which (for most of us) have always been rather paltry. But because journalists know – but aren’t saying out loud – that this purchase is just the latest right-left hook to our dying business model. We, along with everyone else, are waiting for the dreaded knockout punch while marveling ringside at such a gargantuan media buy.
We also know that our parent companies — be they newspaper giants, cable or broadcast stations – don’t exactly have a billion dollars laying around that executives or stockholders are willing to risk on a blogging site filled with porn, copyright infringing material and racist bullcrap—content advertisers don’t typically like.
That said, not all is bleak for journalists. The one thing we have going for ourselves is that Yahoo’s purchase shows, once again, that content is still king. We, content creators, just have a hard time believing it. Both “Facebook and Google have demonstrated that a vast audience for free content can bring in significant advertising revenue,” reports The Wall Street Journal, a fact news executives surely take into consideration as they mount more pay walls. What the Yahoo-Tumblr purchase also represents is an opportunity for individual journalists (and some companies that can be cool enough for the younger crowd) to build their own brands while reaching a new, more coveted, audience.
For news organizations this purchase should not just be viewed as yet another opportunity to use somebody else’s platform to build a brand and distribute product. That’s alright for individual journalists, but for legacy media companies this purchase underscores the fact that they should be investing or creating their own innovative platforms that combine social networking with content to reach a critical mass of people. Sort of like The Atlantic Media Company did when it created Quartz, a mobile-first business news site, last September. Quartz exceeded its own expectations by receiving nearly a million unique visitors in its first month.
Not all of us can be like The Atlantic, which is navigating the digital age better than most of its contemporaries. But if we can’t build it, buy it. You know, like Yahoo just did.