” Reports say the Yahoo board has approved a $1.1 billion cash deal to acquire Tumblr. Yahoo’s board reportedly approved the deal in a meeting on Friday.According to All Things D, the deal was a unanimous vote and it will be announced Monday morning.
Part of the deal stipulates that Tumblr CEO David Karp, will stay with Yahoo for at least four years and retain control over day-to-day management of the online service allowing the Tumblr brand to continue, but Yahoo will be helping to develop advertising.
The Wall Street Journal notes that Tumblr had just started focusing on building its advertising revenue after concentrating on building its user base as an easy-to-use blogging platform.Tumblr has experience fast growth in recent years. According to WSJ, it had a worldwide traffic of about 117 million vistors in April, compared to 58 million the previous year, about 12 million unique visitors on smartphone, compared to about four million in the previous year. The site claims 108.4 million blogs and 50.9 billion posts. It had a US desktop traffic of 37 million in April, comparable to LinkedIn and Twitter although Twiiter has much more mobile traffic. “
- Report: Yahoo to buy Tumblr for $1.1 billion (wtvr.com)
- The Fabulous Life Of David Karp, 26-Year-Old Founder Of The $1 Billion Tumblr Empire (businessinsider.com)
- Why Yahoo’s $1.1 Billion Tumblr Buy Is A Great Idea (YHOO) (businessinsider.com)
- Why Yahoo acquiring Tumblr for $1 billion makes a certain horrible kind of sense [GigaOM] (gigaom.com)
- 5 Reasons Tumblr + Yahoo is Good For Users (forbes.com)