Yahoo just announced its acquisition of the hybrid popular blogging platform and social network Tumblr. The deal ended up with a price tag of about $1.1 billion, a big portion of which will come in the form of cash, validating earlier rumors as well as a Sunday report that Yahoo's board had given their approval for the deal to go forward. Tumblr will be operated as a separate business under Yahoo, and David Karp will remain its CEO.
Tumblr is one of the most popular blogging platforms in the world with more than 300 million unique views every month and 900 new posts every second. The company also offers Yahoo a great way to revitalize its user base and expand its mobile ad efforts to a much larger audience. Marissa Mayer, Yahoo's CEO, commented on the deal:
Tumblr is redefining creative expression online. On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. Both companies are homes for brands - established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.
David Karp, CEO of Tumblr, addressed the Tumblr community:
Our team isn’t changing. Our roadmap isn't changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn't changing. But we’re elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from.
The deal is pending approval from different regulators and is expected to finalize in the second half of this year.
Source: BusinessWire | Image via Tumblr