Yahoo to acquire Tumblr in $1.1bn (£725m)
Yahoo’s confirms a deal to buy New York-based blogging service Tumblr for $1.1bn (around £725m), reports.
The acquisition of Tumblr, a fast-growing platform popular with young users, would be Marissa Mayer’s, Yahoo chief executive, largest deal since taking the helm of the once-iconic internet company in July 2012.
The deal was a “foregone conclusion” and was unanimously voted for by the board, reports AllThingsD.
Neither Yahoo nor Tumblr responded immediately to requests for comment, the acquisition is expected to be announced as early as Monday.
Yahoo CEO Mayer is expected to make an announcement later on Monday at an event in Manhattan [Reuters]
The terms of the acquisition stated that Tumblr would continue to operate as an independent business.
Tumblr was founded by David Karp, a 26-year-old New Yorker in 2007, and he is expected to remain in his role.
According to the Analysts acquiring Tumblr, Yahoo will gain a larger social media presence and enhance its ability to attract younger audiences while its rivals Google and Facebook may experience big loss.
Yahoo’s board has approved a deal to buy New York-based blogging service Tumblr for $1.1bn (£725m), US media reports say.
The acquisition is expected to be announced as early as Monday.
The deal was a “foregone conclusion” and was unanimously voted for by the board, tech blog AllThingsD reported, citing sources close to the matter.
If confirmed, it will be CEO Marissa Mayer’s largest deal since taking the helm of Yahoo in July 2012.
Neither Yahoo nor Tumblr responded immediately to requests for comment.
Under the terms of the acquisition, Tumblr would continue to operate as an independent business, the Wall Street Journal said, citing unnamed sources familiar with the situation.
The company is currently run by David Karp, a 26-year-old New Yorker who founded Tumblr in 2007, and he is expected to remain in his role.
Analysts say that by acquiring Tumblr, Yahoo will gain a larger social media presence and enhance its ability to attract younger audiences in its battle with internet rivals Google and Facebook.
