When Yahoo! meets Tumblr: Why couldn't Microsoft monetize Windows Live Spaces?

With news that Yahoo is in talks to buy Tumblr for the rumored amount of $1.1 billion US, one has to revive the Microsoft Windows Live Spaces debacle, and rightfully excoriate Microsoft executives for giving that asset away.

To recap: Microsoft created Windows Live Spaces as a blogging platform back in the day, and it rapidly grew to over 25 million blogs despite Microsoft's silly, and IMO, stupid restrictions hobbling it. The restrictions were numerous, yet there were 25 million or so blogs. 25 million!

As an aside, you can still see signs of that madness at Microsoft today, where you cannot – cannot! – create an account on Office 365 if your domain contains the word “Windows”, as in AbsolutelyWindows.com or SmallBizWindows.com!

Whatever the case may be, in September 2010, Microsoft abruptly delivered a two-stage bombshell regarding Live Spaces: the abrupt shutdown of the service, and the inexplicable option migrating that large number of blogs to Automattic’s WordPress.

Gratis to Automattic.

Totally free.

I have always thought that was the nadir as far as Windows Live was concerned, and indeed, it turns out to be so.

Today, the Windows Live brand is dead as a doornail.

Coming back to Live Spaces, why didn’t anyone at Microsoft try to get value, some value, any value, for it?

It didn’t have to be monetary, it could have been assets, IP, a bottle of Grand Marnier, anything!

They did not.

Now, Tumble is looking at a $1.1 billion payday.

Someone at Microsoft NEEDS to be publicly flagellated for this.

I volunteer to personally horsewhip either the culprit or the fall guy/gal on the steps of the Island Club in Lagos.

© 2002 – 2013, John Obeto for Blackground Media Unlimited