Yahoo acquires Tumblr for $1.1 billion

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

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18 Comments

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jasonon said,
seems like instagram was a better deal since it has a much more active userbase
(probably a larger one too)

Only since it ceased being the preserve of Apple product owners. Remember the outcry from those same people when the Android client was released?

The heading to this news post should be Yahoo! to acquire Tumblr (the sale is no way completed yet and won't be for months.)

That is exactly what I am expecting from this. Their destruction of GeoCities was something like GeoCities had murdered Yahoo's parents and Yahoo was out for revenge on everything GeoCities knew and loved. It was a rather impressive feat of completely destroying something that worked perfectly fine.

kiss of death just like it was for flickr. Marisa is nothing but a google mole planted to try to reverse the bing partnership. however there is no way anti-trust reviews will allow the google/yahoo merger so Marisa's latest attempt to try to absorb companies on behalf of google will fall flat on its face.

1) David Karp said that he never wanted to have Tumblr absorbed by a "large company". Guess 25% of $1 Billion does change peoples minds...

2) Yahoo will completely screw Tumblr up like they have done with pretty much every other acquired service.

How did the screw up Flickr? It may not have the social base that it used to have, but I feel thats partly due to the rise in other social networks. I still use it as a way to store High Res images of projects in my portfolio to send to clients. In fact Flickr and Tumblr working together would make a great platform

wv@gt said,
How did the screw up Flickr? It may not have the social base that it used to have, but I feel thats partly due to the rise in other social networks. I still use it as a way to store High Res images of projects in my portfolio to send to clients. In fact Flickr and Tumblr working together would make a great platform

They pretty much let it languish until recently. Once a top destination of good photographers, it is just another photo sharing site now.

I rarely comment here - but you said it best.
All the acquisitions I can think Yahoo have made in the past - have led to the closure of that platform.

Oh, shut up, you two. Look at Flickr. We on Tumblr will be just fine. Read the response from Tumblr CEO (who is retaining CEO status), nothing terrible is going to happen. They're getting more money and resources, but with the same team and roadmap.

Mulsivaas said,
Oh, shut up, you two. Look at Flickr. We on Tumblr will be just fine. Read the response from Tumblr CEO (who is retaining CEO status), nothing terrible is going to happen. They're getting more money and resources, but with the same team and roadmap.

I'm looking at Flickr, but all I see is a sad, pathetic shell of something that once was a great service.