Report: Yahoo board approves $1.1 billion Tumblr acquisition

Yahoo is apparently ready to make its biggest acquisition since CEO Marissa Mayer started running the company in July 2012. AllThingsD.com reports that Yahoo's board of directors has indeed approved its rumored acquisition of the Tumblr blogging service for the massive price of $1.1 billion.

The report comes just ahead of a previously announced Monday press conference the company plans to host, where Yahoo has only said it plans to announce "something special." While some reports claims Yahoo was going to reveal something related to its Flickr photo sharing service, it's possible that its purchase of Tumblr will come up as well. AllThingsD also reports that Yahoo was the only bidder for Tumblr despite rumors that Facebook and even Microsoft were planning to put an offer for Tumblr on the table.

Yahoo would certainly like to increase its audience with a younger generation, and bringing in Tumblr to its network of sites would do that nicely. The service, which launched in 2007, now has about 108 million blogs and 100 million unique monthly visitors every month. Tumblr is extremely popular in younger demographics, an area where Yahoo has struggled.

Source: AllThingsD.com | Image via Tumblr

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Mulsivaas said,
Tumblr is an extremely popular blogging service. I suspect they'll be fine.

What revenue/profits does it make?

I don't think it will be the end of Tumblr if Yahoo! lets it remain doing what it's doing much like Facebook has done with Instagram.

Yeah like I said above, just keep the same team and let it run on its own, they will brand it but as long as its not awful and noticeable its alright

Rappy said,
I wonder if they will just do a flickr and leave it alone but just finance it
Goodness, I sure hope so. I know "good" is a subjective quality, but if Yahoo! doesn't have anything "good" to add to Tumblr, then please, for Brad's sake, just leave it alone.

I wonder if Y! will do the same thing with tumblr that they did with Y! groups some years ago and get rid of all of the sudo-kiddy porn on it. I am willing to bet that like 50% of all tumblr pages are porn.