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Official: Yahoo! buys Tumblr for $1.1 billion cash

Lewis Leong

Lewis Leong

  • Updated:

yumblrOn Friday, we reported on rumors that Yahoo! was in the process of acquiring Tumblr for close to $1 billion. Over the weekend, news broke that the deal has indeed gone through and that Yahoo! has purchased Tumblr for a staggering $1.1 billion in cash.

In a blog post written today, Yahoo! CEO Marissa Mayer promised not to “screw [Tumblr] up.” Tumblr will continue to operate independently, meaning Tumblr CEO David Karp will get to keep his job. Mayer is optimistic about the acquisition, naturally, as it “could grow Yahoo!’s audience by 50% to more than a billion monthly visitors, and could grow traffic by approximately 20%.”

In addition to increased traffic for Yahoo!, the company also gets a chance at capturing a younger audience with Tumblr’s social network. Younger users are more likely to share and interact with content, giving Yahoo! a more youthful and active community.

With this deal, Tumblr will also become Yahoo!’s new blogging platform. The corporate Yahoo! blog has already moved to yahoo.tumblr.com and the announcement of the Yahoo!/Tumblr acquisition featured an appropriate animated gif, something Tumblr is known for.

tumblr yahoo gif

[Source: Yahoo!]

Lewis Leong

Lewis Leong

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