Yahoo! has announced that it has decided to acquire Tumblr. The official press release about the acquisition has been released by Yahoo. Approximately for $1.1 billion, substantially all of which will be paid in cash. In the release, Yahoo promises not to screw up & will be operated independently as a separate business. David Karp will remain as the CEO of Tumblr.
Yahoo’s corporate blog has been moved to Tumblr & this is a great sign of Yahoo showing its trust in tumblr. Marissa Mayer has also announced the same on her Tumblr blog. Facebook last year purchased Instagram & now Yahoo going ahead with Tumblr. There are more than 100 million blogs on the site & more than 100 million users across the world. There are many challenges for yahoo as well like monetizing revenues from Tumblr, making the mobile tumblr more popular & others.
- Yahoo acquires Tumblr in $1.1 billion cash deal, ‘promises not to screw it up’ (theverge.com)
- Yahoo Buys Tumblr and Promises “Not to Screw it Up” (allthingsd.com)