GigaOM » David Karp

Buying Tumblr might make Yahoo cool — but buying Pinterest might have made more sense

Eliza Kern — Mon, 20 May 2013 19:17:58 +0000

If Marissa Mayer is on a mission to teach kids about her company, which was founded before some of them were even born, buying Tumblr isn’t a bad way to do it. But in all the discussion of Yahoo’s new deal, too many people are writing about Yahoo buying a blogging site, comparing Tumblr to WordPress, when in fact Tumblr is more of a photo site for the youngs.

While buying Tumblr isn’t necessarily a bad deal for the two companies, as my colleague Mathew Ingram wrote, there’s another photo site out there that might have been an even better deal: Pinterest.

In many ways, Pinterest is also building a mobile-friendly photo site just like Tumblr, but Pinterest is also in the midst of constructing the underpinnings for a potentially much more lucrative native revenue experience. Pinterest is oriented around commerce and consumers craving particular items. That’s good for business.

No, buying Pinterest wouldn’t help Yahoo discover its inner tween. It’s a well-known fact that Pinterest is populated mainly by adult women — not exactly the demographic Yahoo needs to attract. And no, considering Pinterest’s valuation as of its last funding round, such an acquisition probably wouldn’t have come cheap. Acquiring the company would require a much bigger departure from Yahoo’s current mass-market advertising into the world of e-commerce and affliate links. It could be a harder sell to the company’s investors, and a bigger transition for everyone.

But if Yahoo is looking to shell out the big bucks for a site with viral growth, visuals to compete with Facebook, and a devoted community of users, Pinterest might have been the better choice. According to a Pew report in December, out of all online adults (which is basically anyone with an internet connection), just six percent of those people visited Tumblr on a regular basis, compared with 13 percent on Instagram (which isn’t exactly for sale), and 15 percent on Pinterest — only Twitter comes in at 16 percent ahead of the others and behind behemoth Facebook at 67 percent.

Less than a year out of beta, Pinterest is a dominant force on the web; a place where women of all ages collect photos of things that inspire them or things that they want to remember or create. For many, it’s a digital wish-list. And because of that, Pinterest sends huge amounts of traffic to online retailers. To be the intermediary between the people and the stores is a good place to be — you’re a crucial link that drives the sales, without any of the hassle of shipping or orders or user acquisitions that come with e-commerce.

Pinterest CEO Ben Silbermann at the company’s new offices in San Francisco.

Pinterest has no business model in place right now — the site is free to join and for brands to integrate with — but that’s just right now, and it likely won’t last. The company just announced yesterday that it is starting to connect photos of items back to the brands who sell them, and it’s not hard to image how this could play out.

Tumblr does have a business model right now based on ads, and it just started rolling them out on mobile users in April. But the company has been reportedly burning through cash and not yet making a lot of revenue, hoping to bring in $100 million this year. But people are usually pretty unhappy about a free product suddenly peppering them with ads — especially if those ads are dropped into a feed that users have created (just ask anyone how they feel about Facebook ads.) CEO David Karp said at our paidContent event just last month that he wants advertising on the site to be native and unobstrusive.

“We focused on higher up in the funnel, the type of advertising that creates intent,” Karp told us in April. “It gives room for the most creative advertisers to create their best work. I think we’ve started to prove it, and see really good examples of it.”

But that’s a hard nut to crack.

Suddenly, the possible Pinterest model of taking a cut on sales and traffic resulting from users creating digital shopping lists looks a lot less disruptive to the core experience, and potentially more lucrative, than trying to solve mobile display ads for the Tumblr feed. Making money off traffic and sales wouldn’t disrupt Pinterest’s core product, and would generally fit in with the company’s existing user experience, just as promoted tweets are fitting with Twitter’s on both desktop and mobile (a profitable venture so far estimated to bring Twitter $528 million in ad revenue this year.)

So no, buying Pinterest wouldn’t make Yahoo all that hip. But buying the site that has potential to become a strong force in modern, social retail? Seems like a good bet — especially since teens might leave you once Mom joins and you become mainstream.

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Marissa Mayer: Some Tumblr users “may never come to Yahoo,” and that’s OK

Laura Hazard Owen — Mon, 20 May 2013 14:25:59 +0000

Yahoo may have acquired Tumblr for $1.1 billion, but Yahoo CEO Marissa Mayer stressed in an investor call Monday morning that Tumblr will continue to operate as a separate business — aided by Yahoo infrastructure but not hindered by the larger company. The stock market’s reaction to the deal has, so far, been tepid, with Yahoo shares settling to where they started after a brief surge at the opening bell.

“Part of our strategy here is to let Tumblr be Tumblr,” Mayer said. In fact, Tumblr CEO David Karp wasn’t on the morning’s call: He was at an all-team meeting. (“Instead of calling his all-company meetings ‘all-hands,’ he calls them ‘all-team,’”Mayer noted. “I think in the future we’ll call meetings at Yahoo ‘all-team’ meetings.”)

“When you look at the best and most-successful billion-dollar acquisitions in the tech space — eBay and Paypal, Google and YouTube — there’s a meme that emerges,” Mayer said. “The best acquisitions…allow the two brands and the two products and services to evolve somewhat separately.”

Yahoo has “well over” 700 million users, Mayer said, while Tumblr has 300 million — but these audiences overlap so little that the companies can count their combined user base at over a billion.

The difference in user demographics, Mayer acknowledged, means there’s “a type of user that will always prefer Tumblr and may never come to Yahoo” — and that’s fine. Yahoo can “provide search seamlessly in the background” for Tumblr, but it could be existing and future Yahoo users that benefit most from the Tumblr acquisition: “As we pull Tumblr content into our news feeds and our media experiences, it will cause the core Yahoo properties to become that much more interesting and that much richer,” leading more users to the site even if they are from “very different [demographic] profiles from people coming to Tumblr.”

Tumblr users should get ready for more ads

Tumblr will remain a separate site, but that doesn’t mean its users won’t notice a few changes — particularly on the advertising front. “There’s a number of different places where we think we can monetize in a way that’s meaningful and really additive to the user experience,” Mayer said. Tumblr is already including a few ads in its dashboard, but ”we would like to look at that and understand how we can introduce ads — a very light ad load where the impact is really created because the ads fit the user’s expectation and follow the form and function of the dashboard.”

In addition, Mayer said that Yahoo might allow individual Tumblr users to enable ads on their blogs, “but that would always be done with the blogger’s permission.”

So what about Tumblr CEO Karp’s well-known dislike of advertising? “David talks wistfully about the ads that he saw as a child, that would make him want to go see a movie or own a particular type of car,” Mayer said. “He says the current state of internet advertising doesn’t aspire to be as good as the content itself. We think that should change…we’re aligned in those ideals. When you hear us talk about native ads, where the ads are every bit as good as the content, and maybe even make the content better — that’s what we are aiming for. We want the ads themselves to create that aspirational feel that, for example, television ads or movie ads do.”

So, uh, what about Flickr?

In 2005, Yahoo acquired photo-sharing service Flickr. That acquisition, long before Mayer’s time, is widely viewed as a big failure — one that ruined the Flickr experience because Yahoo tried to integrate it, then largely abandoned it.

On Monday afternoon, though, Yahoo is expected to announce updates to Flickr. Could we see a resurgence in that platform, as part of Yahoo’s new “don’t-screw-it-up” acquisition philosophy? Mayer was cautious: “In terms of how Tumblr evolves, it really depends on the creators,” she said. But when it comes to Flickr, “I think it is noteworthy that a lot of the posts on Tumblr are graphical. There’s some obvious synergies between Flickr and Tumblr, in that regard,” and it’s “probably something we’ll turn our attention to in the future. Flickr could provide great storage for albums or slideshows, things like that. We’ll see.”

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What Tumblr’s sale means for New York startup ecosystem

Om Malik — Mon, 20 May 2013 04:28:31 +0000

A few weeks after Ken Lerer quit AOL-owned Huffington Post to work on his venture fund Lerer Ventures, I stopped by in his office to catch up and talk about the New York landscape. And during our conversation, he pointed out that New York is still a big media town, except different kind of media. If you stand on Broadway and look above 34th street, you can see the media of the past. Look down the Broadway, you see the future. What he meant was that it was in Soho, Nomad and East Village (and Brooklyn) that companies like Foursquare, Tumblr and Thrillist made their homes. They were the new kind of media, one that married technology, social and content.

Ken Lerer, Lerer Ventures & Huffington Post, Co-founder

I was reminded of that conversation today, when the news emerged that Yahoo board had approved the $1.1 billion cash offer for Tumblr, the social sharing platform. It would be one of the biggest exits for a New York-based startup. Sure, there have been other exits — Google paid $3.1 billion for DoubleClick, but that was a company that belonged to a different internet era. There was AOL buying Huffington Post for $315 million, eBay bought Hunch for about $80 million, Skype took out GroupMe for about $85 million, and more recently Salesforce ponying up $689 million for Buddy Media. But Yahoo snapping up Tumblr is in a whole different league.

The new New York

Why? Because Tumblr, in many ways, is a visible manifestation of this new New York, one where startups combine technology with content (one of New York’s core industries) for a new world. It is a success story that matches the fable-like qualities of the Instagram-Facebook deal. Of course, a real comparison would have been Twitter and Tumblr — both companies were started around the same time, both are essentially content sharing and amplification systems and both have enjoyed a similar growth curve. Twitter has grown bigger with an eye on an IPO, and Tumblr is now going to be part of Yahoo.

But that is a comparison for another day, for the New York community is clearly excited about this deal. A Silicon Alley insider who wished to remain anonymous put it best when he described this deal as sign that finally in New York people who build things are getting rich versus people (Wall Street) who take things. A bit hyperbolic, but the point is well made. I think this exit allows the young New York startup community to look up to David Karp in the same way folks here look up to Kevin Systrom of Instagram.

BetaWorking

John Borthwick, who is co-founder of New York-based Betaworks, believes that it is an important turn of the cycle, and the sale of a social media company like this helps solidify and legitimize the entire New York startup ecosystem. Borthwick’s incubator was a seed investor in Tumblr, and that investment will pay handsomely.

John Borthwick, co-founder, Betaworks & seed investor in Tumblr.

Borthwick points out that the knock-on effects of this sale are going to help the new tech-centric New York gain momentum. Just as PayPal helped spawn a series of other companies, many in New York are optimistic that Huffington Post and Tumblr are going to result in many more startups. HuffPo’s progeny include BuzzFeed and RebelMouse, and Tumblr’s talent is likely to do more interesting things, he argued.

Lerer, grand wizard of the New York tech scene, believes that New York is no longer an after thought. “This is just beginning,” said Lerer, who has invested in 150 companies (80 percent of which are in New York). And with content being central (something he shared in a conversation at paidContent Live), Lerer believes that New York will become a bustling startup city.

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Why Yahoo acquiring Tumblr for $1 billion makes a certain horrible kind of sense

Mathew Ingram — Sat, 18 May 2013 15:41:27 +0000

According to a blizzard of anonymous news reports, Marissa Mayer is working feverishly to land the biggest fish of her career as CEO of Yahoo: namely, the $1-billion-plus acquisition of New York-based Tumblr, the ultra-hip blog network — the two are reportedly involved in discussions that could come to fruition as early as Sunday. Although Tumblr fans seem horrified by the idea, this one makes a substantial amount of sense for both sides.

Of course, as Om and others have already mentioned, there’s no guarantee this deal will actually be consummated: it could fall apart on valuation, as so many deals do — or Facebook could swoop in with a much higher offer and snatch Tumblr out of Yahoo’s clutches, the same way it did when it stole Instagram away from Twitter last year for close to $1 billion.

Update: According to the Wall Street Journal, the Yahoo board of directors has approved a $1.1-billion all-cash bid to acquire Tumblr.

It makes Yahoo look desperate — because it is

Even if the deal does get done, one of the risks for Mayer and Yahoo is that the company could look desperate by paying more than $1 billion for a site that had revenues of less than $15 million last year (although CEO David Karp has said that figure should hit $100 million this year). That’s an almost bubble-like multiple for a company, and there will likely be plenty of criticism from investors who believe that $1 billion could be better spent elsewhere — in other words, on businesses that would make Yahoo a better return.

But the painful fact is that Yahoo doesn’t just look desperate — in many ways it is desperate. Mayer has made some changes since she took over the ailing former web portal, including the acquisition of Summly and a number of other mobile-focused startups and services, but the company still needs to make some aggressive moves if it is going to jump-start any growth at all. And since Yahoo has about $4 billion in cash on hand, it can arguably afford to make a big bet.

Yahoo buying Tumblr makes sense. Tumblr is only big, cool, newish social platform that Yahoo can afford.—
Henry Blodget (@hblodget) May 17, 2013

For Yahoo, the addition of Tumblr would do a number of things: because of the size and profile of the deal, it would make a major statement about Mayer’s intention to do whatever it takes to revitalize the company, and it would also send a signal to Facebook and Google — and even Apple — that Yahoo is a potential force to be reckoned with when it comes to potential acquisitions. Is doing that worth $1 billion? That’s for Yahoo’s investors and board of directors to decide.

Just as important, it would inject some much-needed life and energy into the somewhat stale lineup of content that the company currently relies on, which caters more to the over-50 set than it does to anyone in the much-desired 18 to 25 demographic. More than any other network, Tumblr is the platform of choice for media-obsessed teens and 20-somethings, who spend massive amounts of time sharing photos and videos and animated GIFs on the site — an engine of potential value that Yahoo desperately needs.

Tumblr gets a massive exit

This doesn’t come without its own risks, of course: As a number of observers have noted, Tumblr’s content contains a large quantity of not only mature or arguably offensive content but outright pornography, which many argue is the source of its massive traffic numbers. How Yahoo (or Facebook for that matter) would deal with this kind of content remains to be seen.

3 q's for Yahoo: 1) Can you convert Tumblr users to Yahoo products? 2) Can you monetize Tumblr PVs? 3) What to do w/ all that Tumblr porn?—
Mark Zohar (@markzohar) May 18, 2013

For Tumblr, meanwhile, being acquired would solve a number of problems — the main one being that the company has gone well beyond the “we’re a startup so we don’t really have to make money” stage, and is facing increasing pressure from the investors who have given CEO David Karp more than $125 million in venture financing, an investment that values the company at about $800 million. Accepting a giant check from Yahoo would take care of that problem in one fell swoop, especially if it was all in cash.

With a major company like Yahoo as a partner, Tumblr could connect its massive audience of users to the firehose of ads and other monetization methods the giant web portal has, and potentially generate much more revenue than it could have by itself. The only lingering question at that point is whether Tumblr fans decide that Yahoo is poisoning the well of social content and community on the site, and decide to flee for greener pastures. In other words, does Yahoo make Tumblr into YouTube — a successful standalone network that can grow and prosper on its own — or does it become MySpace?

The only scenario where a Yahoo-Tumblr combo works is if Yahoo keeps Tumblr separate in the same way Google managed YouTube.—
Mark Birch (@marksbirch) May 18, 2013

Post and thumbnail photos courtesy of Shutterstock / ollyy and Albert Chau

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Report: Yahoo eager to close $1.1 billion cash deal for Tumblr by Sunday evening

Tom Krazit — Sat, 18 May 2013 00:25:33 +0000

Tumblr’s fate could be decided Sunday by Yahoo’s board of directors. AllThingsD reported late Friday that Yahoo is closing in on a $1.1 billion deal for the site, moving quickly to cement what would be the biggest deal of CEO Marissa Mayer’s tenure at the venerable but lackluster internet pioneer.

After reporting Thursday that Yahoo was considering a number of options for Tumblr, including partnerships or strategic investments, ATD reported Friday that Mayer had decided to go all in. Om reported Thursday that Yahoo was worried about counteroffers from Facebook, much how Facebook stole Instagram from Twitter after Twitter co-founder Jack Dorsey’s courtship of the photo-sharing site. Now the board plans to meet Sunday to consider giving final approval to the offer.

Tumblr’s backers will likely be pleased with a $1.1 billion price tag, especially if, as reported, it involves cash However, it’s far from certain that such an outlay would do anything to revive Yahoo’s fortunes. Mayer certainly has been trying to bring new blood into the company of late, snapping up a number of smaller mobile startups before focusing on Tumblr over the last month.

Yahoo has scheduled a press event for Monday evening in New York to discuss “something special,” but it wouldn’t hint at anything else. We’ll be there to cover the event, but in the meantime, here’s Tumblr founder and CEO David Karp’s appearance at our paidContent Live conference in April, discussing his company’s fortunes:

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Yahoo wants to buy Tumblr. Will Facebook swoop in at the last minute?

Om Malik — Fri, 17 May 2013 05:32:42 +0000

Yahoo chief executive Marissa Mayer thinks that what Blogger did for Google, Tumblr could do for her aging Internet company — make it relevant and a major player on the modern web. And for that she is apparently willing to spend a billion dollars (or perhaps higher) in order to buy the New York-based social publishing and sharing platform.

The news of the pending deal was first reported by AllThingsD and later Adweek reported rumors of their deal as well. At least a couple of our own sources say that the talks are serious. We have also learned that the deal is being championed by CEO Mayer, who according to Kara Swisher, has met with the team from Tumblr. We have learned that Yahoo’s New York-based corporate development team is leading the process, though like all deals, talks could fall apart. (We have reached out to the respective parties for their comments, but so far we have not heard back from them. We are going to update the post to reflect their responses.)

Tumblr says it has nearly 108 million blogs, over 50 billion posts and it is said to have 117 million visitors a month according to comScore. Forbes.com reports that Tumblr made $13 million in 2012 and is looking to bring in about $100 million, thanks to its new advertising initiatives. The company also recently introduced mobile advertising. For Yahoo this could be a much needed foray into mobile advertising and also into pushing new native ad-formats that help diversify its ad business away from the usual web advertising.

Valley calls Karp

David Karp, one of the co-founders and chief executive of Tumblr, has been seen around in Silicon Valley. Tumblr has been trying to raise a new round of funding, but it’s slower than expected revenue ramp has acted as a dampener for the fundraising efforts. Tumblr has raised a total of $125 million and is rumored to be valued at $800 million. Tumblr investors include Union Square Ventures, Spark Capital, Sequoia Capital and Greylock Ventures.

But Yahoo may not be alone in courting Tumblr. In November 2012, my colleague Mathew Ingram argued that Facebook and Tumblr should poke each other. Surprise surprise, it is something that is nagging Yahoo bigwigs.

Facebook in the mix?

We have heard that Yahoo is worried that Facebook could swoop in at the last minute and beat it to the buzzer. If the Instagram acquisition was any indication, then we shouldn’t doubt Zuckerberg’s salesmanship. Karp is said to have a close relationship with Facebook and was recently spotted at the Facebook Home launch. Facebook could use the much needed younger 18-to-24 year old demographic, something it (successfully) tried to acquire with Instagram. A Facebook spokesperson declined to comment.

One question is why wouldn’t Google want Tumblr? After all, it would mean young people on a social network that could feed into Google+ — sort of like how Blogger fed pages into Google. I am guessing given its ownership of Google+ and Blogger, Google might meet some resistance from the Department of Justice. Still, as our sources pointed out, Yahoo knows the challenges in the competitive landscape and is trying to move very fast. The speed would perhaps mean that the company could short circuit the due-diligence process and overlook Tumblr’s challenges with content of questionable provenance.

Money Talks

The good news for Tumblr and its backers: Mayer will soon be super flush with cash. According to a recent Yahoo 10-Q filing, the value of Yahoo’s stake in Alibaba has gone up substantially as Alibaba’s continues to grow its revenues at a healthy clip. Yahoo owns about 23 percent of Alibaba and the Chinese eCommerce company is likely to go public and could worth as much as $100 billion in its post-IPO avatar. Yahoo is expected to sell about half its stake in the Chinese company in the likely 2014 IPO. Wall Street currently values Alibaba at around $70 billion.

In the end the question that remains: is Tumblr the fountain of youth that Yahoo badly needs or will this be a case of a pathetic middle aged guy hanging with youngsters, trying to be hip. Either way, Tumblr founders and backers could laugh all the way to the bank.

PS: Read this teenager’s response to a question on Quora, “How do teenagers waste hours upon hours consuming Tumblr?”

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paidContent Live Re-Run: David Karp on Tumblr in the media landscape

Chris Albrecht — Tue, 30 Apr 2013 11:30:14 +0000

Tumblr founder and CEO David Karp took part in our recent paidContent Live show earlier this month, and spoke about his company’s evolving role in the media world. In this Q&A with Mathew Ingram, Karp talks about some of the success Tumblr-ers have found on the platform, including the 70 book deals that have sprung from its digital pages.

Listen in to the full interview from the session, and check out all of our coverage from the event.

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Host: Mathew Ingram, Sr. Writer, paidContent/GigaOM
Guest: David Karp, Founder and CEO, Tumblr

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Tumblr turns toward user-driven discovery with improved sharing, Pocket and Instapaper support

Laura Hazard Owen — Wed, 24 Apr 2013 17:11:01 +0000

Tumblr is making it easier to save content to read for later, with updates to its iOS app released Wednesday. The updated version of the app now lets users save Tumblr posts to Pocket and Instapaper and share them via Facebook, Twitter and other services. Users can also email the full text of a post to someone else.

The iOS app’s improved sharing features are likely intended to help users drive discovery. Tumblr shut down its Storyboard project, which was designed to surface interesting editorial content, earlier this month. Tumblr CEO David Karp said at the paidContent Live conference last week that the company wants to help users discover this content themselves, but “we don’t want to say what great content is, or these are our favorite blogs.” And the integration with Pocket and Instapaper suggests that Tumblr sees itself not just as a platform for short, image-heavy posts and videos but also as a home to longer text-based content that people will want to stick around and read for awhile.

Separately, Pocket rolled out its own send-to-friend feature last week. The feature lets users email content directly from Pocket’s apps, and if the recipients are also Pocket users, the shared articles will show up within their app.

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Tumblr rolls out mobile ads, which will appear alongside posts in user streams

Laura Hazard Owen — Mon, 22 Apr 2013 16:59:11 +0000

Users of Tumblr’s mobile apps are noticing something new in their streams today: Ads. The company rolled out mobile ads for the first time Monday, after announcing that it would do so in March.

The first participating advertisers are ABC, GE, Pepsi and Warner Brothers. AdAge described how the ads will work:

“Users of Tumblr’s iOS and Android apps will see up to four ads per day, and they’ll be differentiated with a dollar-sign icon with beams shooting out of it, just as they are in the two existing placements. A Tumblr spokesperson said these ads will ultimately migrate to desktop computers but offered no timetable.”

Tumblr tiptoed into ads last year with Radar, an ad unit that appears on a user’s dashboard. Tumblr founder David Karp said at the paidContent Live conference last week that the Radar initiative focused on “the type of advertising that creates intent. It gives room for the most creative advertisers to create their best work.” Tumblr is not yet profitable, but head of sales Lee Brown told Bloomberg last month, “We expect that the monetization will lead us to profitability this year.”

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Tumblr CEO David Karp says at least 70 users have turned blogging into book deals

Eliza Kern — Wed, 17 Apr 2013 15:59:00 +0000

Think your blog posts on Tumblr are pretty good? Just talk to the people who’ve turned those posts into book deals.

Speaking at PaidContent Live in New York on Wednesday, Tumblr CEO David Karp described the site as a creative platform where users are free to grow an audience and develop talent that has the potential to see success elsewhere, such as the 70 users who turned their blogging skills into book deals. Karp said the company saw three book deals for users last month alone, but the company isn’t viewing that as the only metric of success.

“What’s even more interesting to me than people going through traditional paths are people who are using those new emerging platforms,” he said. “What’s so exciting to me about Tumblr as a media network today is this new generation of creative commercialization tools that are being built on top of these other networks. People who don’t have to go to Harpers to publish the book deal, they can self-publish on Kickstarter instead.”

Karp’s focus on creativity is an idea that extends into the way the company is rolling out advertising. The company recently started rolling out mobile advertising, and is working on making that advertising fit within the existing Tumblr network.

“We focused on higher up in the funnel, the type of advertising that creates intent,” Karp said. “It gives room for the most creative advertisers to create their best work. I think we’ve started to prove it, and see really good examples of it.”

But Karp noted that Tumblr isn’t profitable yet — although he expects it eventually will be — and he noted he has supportive investors for the company, which most recently raised $85 million in venture funding back in 2011. The company gained notoriety recently when it shut down Storyboard, the experimental project in which it hired an editorial staff to highlight and aggregate the best content on Tumblr.

“It’s not a knock on that team at all. We hired a really brilliant team to do really good work. We gave it a shot, we gave it a year. And after a year, we decided it wasn’t the right tool for our toolbox,” Karp said. “It was working in some regards, but not in the we wanted to see it look.”

Tumblr isn’t that focused on the number of pageviews the site is getting, Karp said, although users create 90 million new Tumblr posts per day. Instead, Karp said the focus has moved to time spent on Tumblr — now at 14 minutes per day — and figuring out how to monetize that content as well as helping new users discover interesting content without picking favorites among the blogs.

“We want to give you the stuff you’re going to love on Tumblr, but we don’t want to say what great stuff on Tumblr is. We don’t want to say what great content is, or these are our favorite blogs. We don’t wan to color it too much or scare anybody off.”

Check out the rest of our paidContent Live 2013 coverage here, and a video embed of the session follows below:

A transcription of the video follows on the next page

Go to page 2 (of 2) on GigaOM .

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