Yahoo! to bring Tumblr on board in $1.1 billion acquisition deal
Numerous reports were circling late last week that Yahoo! was to secure a partnership or strategic investment with short-form blogging website Tumblr, with the two companies announcing yesterday (May 20) that they had reached an agreement for Yahoo! Inc. to acquire Tumblr.
Tumblr is one of the fastest-growing media networks in the world, with more than 300 million monthly unique visitors and almost a quarter of a million (120,000) sign ups every day, with Yahoo! chief executive officer Marissa Mayer promising "not to screw it [Tumblr] up".
Tumblr founder David Karp will remain chief executive officer, with the website to be independently operated as a separate business.
Yahoo!'s audience is expected to grow by 50 per cent to more than a billion monthly users, with the combination of Tumblr and Yahoo! growing traffic by around 20 per cent.
"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," said Mr Karp.
"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."
Tumblr will be able to use Yahoo!'s search infrastructure and personalisation technology to assist users in finding content and bloggers they love, while Yahoo! will have 50 billion blog posts brought to their media network and search experiences.
The acquisition deal is priced at around $1.1 billion, with the transaction expected to close in the second half of 2013.
Posted by April Revake.