Since Marissa Mayer confirmed Yahoo was buying Tumblr last Monday, analysts and members of the media alike have raised comparisons between Tumblr and Instagram. Both were at the center of $1B+ deals that took the public by surprise, both have large user-bases concerned about intrusive parent-company involvement, and most important, both emerging platforms are extremely popular with young people–Tumblr, especially so.
But in the video above, L2 Founder Scott Galloway says that’s where the similarities end. Instagram, he argues, made clear strategic sense for Facebook; how Instagram would fit into the Facebook experience was not difficult for users to envision. It was a deal, he says, that obviously benefited shareholders on both sides. For Mayer and Karp, however, there are many more questions: how will Yahoo integrate Tumblr? How will Yahoo monetize Tumblr? How will Yahoo attract brands to Tumblr when their presence on the platform is half what it is on other social networks, with a relatively flatlined growth rate? How quickly Yahoo leadership is able to address concerns like these, Galloway believes, is critical in proving that buying Tumblr was a smart move.