Marissa Mayer:

I’m delighted to announce that we’ve reached an agreement to acquire Tumblr! 
We promise not to screw it up.  Tumblr is incredibly special and has a great thing going.  We will operate Tumblr independently.  David Karp will remain CEO.  The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve.  Yahoo! will help Tumblr get even better, faster.

Since news seeped out regarding Yahoo's potential Tumblr acquisition last week, there's been a constant thread of discourse on Twitter. Onlookers have been repeatedly noting that, firstly, Tumblr is not a revenue driver and, secondly, this is a cash deal.

The implication of these tandem points is that Yahoo requires a business to increase its revenues, whilst also highlighting the lack of leverage Yahoo has in such negotiations.

Overlooking the former point for a moment, I think it's interesting to consider Yahoo's lack of potency and leverage. The company has depleted its social value and has become largely irrelevant for an enormous swath of Internet users over the past decade. The company has repeatedly purchased popular startups (e.g., Geocities, Flickr, etc.) and has always failed to capitalize on them.

Importantly, however, all of these failings were committed without Marissa Mayer at the helm.

Mayer was brought on board to rescue Yahoo from a virtually inescapable abyss of pointlessness. Obviously that's an extremely difficult task — one that will likely take several years to come to fruition — but I've found her stewardship of the company to be outrageously encouraging over the past ten months.

Looking over her time with Yahoo, we've already witnessed Mayer infuse much-needed life into Flickr, ban remote working, acquire Summly, and purchase Tumblr. Reviving Flickr and banning remote working are utterly steeped in pragmatic business, as Mayer requires the support of the Internet-faring users of Flickr and needed a convenient way to trim her workforce whilst also increasing worker activity. Summly and Tumblr, however, pose less obvious advantages.

Personally, I laughed when Summly was acquired. The company was run by a young man known for his immaturity, the technology was licensed from another firm, and the actual service was largely unused.

And yet, viewing the acquisition through post-Tumblr, I suddenly understand much of what Mayer intended.

Summly garnered headlines all around the world due to the CEO's age. Yahoo became a name associated with enabling and facilitating youthful innovation and entrepreneurship. And, today, with the Tumblr acquisition, that reputation is only further grounded.

Tumblr may not drive revenue (today), but it'll increase Yahoo's traffic by an enormous multiplier. Tumblr may not be directly rebranded as a Yahoo property, but it'll increase the brand-value and mindshare of Yahoo exponentially. And Tumblr may not be the blogging platform of choice for professionals, but it's veritably filled with young, taste-making people.

Mayer's stewardship may've been costly and some elements may've been controversial, but we've not discussed Yahoo this much in a decade. The company has not come to mind as a point of fascination or relevance in such a long time. And that's hugely significant.

Perhaps Yahoo's cash reserves are depleted, but we're now seriously discussing a Yahoo comeback. And if there's ever been a good cause for spending a cash reserve as a failing company, I suspect such acquisitions and business decisions would rank very highly, indeed.

Increasing revenue and value for shareholders is the primary goal of any CEO. Although Mayer has not yet done this in an obvious or direct manner, I genuinely believe she has set out the groundwork for a resurgent Yahoo for the next decade.

I cannot wait to see what Mayer does next. And that's utterly indicative of quite how successful she's been as CEO at Yahoo.

Posted
AuthorMatt Alexander

Myke Hurley, 5by5:

This week Matt and Myke discuss the Lumia 925, HTC First, Blackberry Messenger, what happened when Myke went back to the iPhone for 24 hours and Google I/O.
Nokia's aluminum Lumia 925 is the best Windows Phone yet, but that's not enough (hands-on) | The Verge
HTC First discontinued by AT&T: First ‘Facebook phone’ a flop | BGR
BlackBerry announces BBM 'Channels' social platform for brands and celebrities | The Verge
Star Command for iPhone 3GS, iPhone 4, iPhone 4S, iPhone 5, iPod touch (3rd generation), iPod touch (4th generation), iPod touch (5th generation) and iPad on the iTunes App Store
Punch Quest - Android Apps on Google Play
mykechats
Everything announced at the Google I/O 2013 keynote in one handy list - The Next Web
OneThirtySeven

Following all the Google I/O, Nokia, HTC, and Blackberry news this week, Myke and I recorded an extra-special episode of Bionic.

For those new to the show and trying to get a grasp as to why we have Bionic, this might be a good starting point. We work hard to have an even-handed dialog about the industry and, considering all the news this week, it's probably the perfect embodiment of all that we've wanted the show to become.

Bionic is available from its new home at 5by5.

Posted
AuthorMatt Alexander

Tom Warren, The Verge:

Nokia just unveiled its Lumia 925 at an event in London, and I've managed to take an early look at the handset ahead of its release in June. Nokia has swapped out a unibody polycarbonate look and feel for metal. Aluminum to be precise. The result is a stunning, slimline Lumia that weighs just 139 grams. It's really noticeable when you pick up the Lumia 925 for the first time. With a polycarbonate rear, and aluminum frame wrapping around the side of the device, it feels almost as plastic and lightweight as a Samsung Galaxy. But the aluminum makes it a lot more sturdy and brings it to similar design and hardware levels as Apple's iPhone 5.

With the release of the Lumia 925 and the HTC One, the first half of 2013 has brought gifts of truly phenomenal industrial design, but failed to deliver in terms of software — both experientially and aesthetically.

Marry either the One or the 925 with stock Android and I daresay you'd have truly impactful devices on the market to challenge the iPhone.

Mar both the One and 925 with a subpar software experience, however, and you continue to face the same aged problems endemic to the marketplace.

Although I comprehend HTC's dogged loyalty to its Sense skin amidst a poorly differentiated Android market, Nokia's dire attachment to Microsoft is simply baffling.

In its early stages, the allegiance, admittedly, made sense. Microsoft was willing to provide money and support, thereby saving Nokia, whilst Microsoft also received an aesthetically admirable hardware arm. It was a symbiotic relationship that provided clear benefits to all parties.

Today, on the other hand, Microsoft has increasingly distanced itself from Nokia and the purported benefits of the relationship have been left by the wayside. In an effort to catalyze growth in its ecosystem, Microsoft has thrown its support behind HTC and rumors continue to swirl regarding a Surface-branded phone. Meanwhile, Nokia has been left behind with its devices, burned with the Windows Phone 7-to-8 upgrade debacle, and so on.

Nokia continues to bless a stagnant — albeit attractive — operating system with genuinely beautiful hardware. Meanwhile, Microsoft continues to court competitors, ignore its most valuable hardware asset, and fail to drastically cover any ground in its game of competitive catch-up.

The relationship is, in other words, poisonous to Nokia. We've watched as the firm has built multiple iterations of fantastic products only to be underserved on the software side. And as stock Android arrives at a point of true attraction and viability, the tragedy of the situation only worsens.

The Lumia 925 is both a triumph of design and a failure in business. It's objectively well-considered, whilst also being a vapid disappointment.

Unless Microsoft can provide a compelling reason for Windows Phone adoption in its — presumably impending — yearly update, there's simply no reason to purchase a Lumia 925 beyond its good looks. And that's a shame for customers, a problem for the competitive landscape, and ought to be a dire concern for Nokia.

Posted
AuthorMatt Alexander

Stephen Hackett, 70Decibels:

This week, the boys are joined by a special guest to discuss Iron Man 3.

Not to ruin the presumably obvious surprise, but I had the distinct pleasure of joining Mr. Michael Hurley and Mr. Stephen Hackett on yesterday's episode of the 512 Podcast.

Featuring some on-air trolling and an intensely nerdy discussion about Marvel's latest film, Iron Man 3, I had an absolute blast recording this episode.

Incidentally, for those who haven't seen Iron Man 3, I'd strongly suggest keeping this episode on hold until you do so. It features some rather gargantuan spoilers.

Also, for those who are unaware, Mr. Hackett is selling some limited edition 512 Pixels t-shirts in time for WWDC. I put my order in and you ought to as well.

Episode 62 of the 512 Podcast is available from 70Decibels.

Posted
AuthorMatt Alexander

Jacob Kastrenakes, The Verge:

Adobe is making a major move into the cloud. The company has just announced the next version of its flagship digital editing tools, Creative Suite, and for the first time the new products will only be available through the company's online subscription service. Adobe previously offered standalone editions of each product, which users could choose to keep or upgrade as new editions were released, but now the only way to receive major feature updates to the product series will be to remain subscribed to the $49.99 per month service.

I've been a Creative Cloud user for almost precisely one year and I couldn't be happier.

In fact, just ahead of the service's release last year, I wrote the following:

In building an accessible and affordable backbone for Adobe services, the likes of Photoshop and Illustrator are no longer relegated to the confines of the elite, but rendered open, seamless, and even affable to the average consumer. Although I have long been willing to pay for the full Creative Suite offering, I eagerly await the arrival of Creative Cloud this Friday. If the backbone works effectively, I imagine Adobe will find itself winning over a great many people in the coming months.

Creative Cloud has clearly succeeded in having an impactful introduction into the creative world and is doing plenty to democratize and distribute the tools necessary to create the best work.

Many have been apprehensive over the pricing of Creative Cloud and what impact this might have on Adobe's long-term dedication to its software and innovation. Although I can certainly recognize and appreciate the concern, I tend to think it overlooks much of the value of the service for an enormous volume of users. 

Simply put, although it removes a large cash influx each year from a minority of dedicated customers, Creative Cloud ensures an ongoing revenue stream, whilst also increasing the potential customer base.

I suspect Creative Cloud appeals to a much larger demographic than a full $1,000+ Creative Suite package. Accordingly, I'd argue that Adobe has opened the door to much higher revenues, whilst also reducing the viability and attractiveness of pirated copies.

In other words, Creative Cloud renders Adobe software a mainstream and accessible suite of tools for those interested in all manner of creative endeavors. And, with this pricing scheme, the usage of Adobe's software becomes incentivized and attractive for a huge number of users. Adobe will no longer have to sustain multiple versions of its software, but instead focus upon iterating and improving upon its core products at all times.

If you ask me, this is an unprecedented opportunity for innovation, particularly as Adobe now must worry itself over actively losing subscription income. Customers are no longer distant, veiled entities, but engaged, active, and important elements of Adobe's success.

In my eyes, this makes Creative Cloud one of the most useful and reliable services to which I subscribe. And I fully intend to continue my subscription for the coming year. I suspect it'll only continue to impress.

Posted
AuthorMatt Alexander

Paul Miller, The Verge:

I'd read enough blog posts and magazine articles and books about how the internet makes us lonely, or stupid, or lonely and stupid, that I'd begun to believe them. I wanted to figure out what the internet was "doing to me," so I could fight back. But the internet isn't an individual pursuit, it's something we do with each other. The internet is where people are.

Paul Miller's experiment has been one of the most controversial, derided, and frequently queried topics in recent memory. Some believe the entire notion of leaving the Internet is a contrived and pointless and endeavor. Others believe it was an attention-grabbing and utterly embarrassing piece of year-long link bait.

In my eyes, however, Paul's experiment has been one of the most fascinating and valuable sociological adventures in a very, very long time.

The Internet has become an inextricable portion of our lives. Regardless of where you are or what you do, the fabric of digital information has pervaded virtually every facet of our daily experience. And the desire to understand the ramifications of this reality is irrefutably important.

Paul, as a religious and self-confessed depressive 26-year-old man, took it upon himself to explore those ramifications. It was not easy. It was not natural. And I take sincere offense with the notion that it was purely for attention.

Reading his 'Offline' journals and watching The Verge's concluding video of the experiment, there's a visceral sense of tension and trouble. Paul embarked on something alien and difficult — something that seems so harmless and pointless from our vantage points — and truly tested himself in doing so. He didn't come out unscathed and we won't truly be able to gauge the impact of this for quite some time.

Paul's 'Offline' experiment has been polarizing, but I reside firmly on the side of admiration and appreciation for his — for lack of a better word — sacrifice. He challenged his profession, lifestyle, and, indeed, modern society, and he kept track of all involved.

I cannot shake the feeling that we'll be reflecting on this experiment over the coming years — particularly with the advent of wearable technologies like Google Glass — as one of intense value. Deride 'Offline' if you must, but I choose to regard the experiment — and Paul Miller — with a very sincere sense of respect.

Returning, Paul's first article begins with the simple and humble statement: "I was wrong." It's a poignant confession — one that ought to resonate deeply within all of us.

Posted
AuthorMatt Alexander