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Yahoo U-turns on Tumblr: Splits ad sales teams

Yahoo is reversing its decision to merge its ad sales teams with Tumblr’s, following the blogging site’s declining performance.

Tumblr was recently revalued downward to $230m, much lower than the $1bn price tag Yahoo paid for the firm back in 2013.

“In 2015, we experienced a slower ramp in monetization than we initially expected, and coupled with the sales realignment, the business didn’t deliver that $100 million revenue goal for the year,” said Yahoo CEO Marissa Mayer in the company’s fourth-quarter earnings callearlier this month.

According to reports, Yahoo is planning to reverse course on one of the bigger internal moves it made when it first acquired Tumblr.

Tumblr’s sales team will exist as an independent entity again instead of being merged with Yahoo’s sales teams.

“Since the acquisition, Tumblr has introduced a number of innovative ad products to maximize value for our advertisers and best meet their needs. To further support these efforts moving forward, we have returned to a dedicated direct sales team,” a Tumblr spokesperson told Business Insider.

“For Tumblr, our priority remains user growth, and we have been pleased with the progress made in engagement, with over 80% of daily users on mobile,” Mayer said on an earnings call.

“Moving forward, the team has a solid plan in place, and we continue to believe that Tumblr’s compelling content and attractive demographics will be a significant long-term driver of our overall Mavens and Company growth.”

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