Yahoo acquires Tumblr for $1.1 billion

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Yahoo just announced its acquisition of the hybrid popular blogging platform and social network Tumblr. The deal ended up with a price tag of about $1.1 billion, a big portion of which will come in the form of cash, validating earlier rumors as well as a Sunday report that Yahoo's board had given their approval for the deal to go forward. Tumblr will be operated as a separate business under Yahoo, and David Karp will remain its CEO.

Tumblr is one of the most popular blogging platforms in the world with more than 300 million unique views every month and 900 new posts every second. The company also offers Yahoo a great way to revitalize its user base and expand its mobile ad efforts to a much larger audience. Marissa Mayer, Yahoo's CEO, commented on the deal:

Tumblr is redefining creative expression online. On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. Both companies are homes for brands - established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.
David Karp, CEO of Tumblr, addressed the Tumblr community:

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. 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.

The deal is pending approval from different regulators and is expected to finalize in the second half of this year.

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Source: http://www.neowin.net/news/yahoo-acquires-tumblr-for-11-billion

Comments

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FrogPosted:

slapshot101 I don't see how Yahoo keeps losing money when they are buying high stakes companies that are massively successful...


Well they' probably aren't losing money then... They must have enough money if they bought Tumblr!

slapshot101Posted:

I don't see how Yahoo keeps losing money when they are buying high stakes companies that are massively successful...

NasyrPosted:

Kiingyy Generally, a lot of things Yahoo! buy go down hill, hopefully Tumblr doesn't do the same! :P


Yeah a lot of them lose in such a short time after Yahoo buy over them.

KiingyyPosted:

Generally, a lot of things Yahoo! buy go down hill, hopefully Tumblr doesn't do the same! :P

Khronic_CBPosted:

OGPurge
Gossip How is this website worth 1 billion dollars


Because of advertisements.


Because of people with way too much time on there hands with nothing better to do then read/look through everyone else shit, same story different name ex: Facebook, Twitter, Skype. With Skype just being a remake of yahoo messenger and everyone blindly following the masses -_- people these days are so **** simple it's sad. Wanna make a million dollar app... Make an interface that you can have your own "identity" on, let people post pictures/videos from any sources they wish, throw a forum section in if you want people to stay logged in for hours, and try and get anyone famous, yes anyone no matter how old or young just anyone, few months rolls by, tada yahoo is offering you 3mill.

OGPurgePosted:

Gossip How is this website worth 1 billion dollars


Because of advertisements.

LumPosted:

Gossip How is this website worth 1 billion dollars


From many different things, a website such as TTG is also worth a large sum, but not a billion but it's an example.

slapshot101Posted:

Gossip How is this website worth 1 billion dollars

All the ad revenue that they can make from this website is easily around 1 billion. Thats how all these websites make their money.

SynybunPosted:

Rainbow_Dash
Syn_v7
aimiami12 i dont think tumblr is going to be around for much longer. I think its already declining in users and it really never got that popular. (And i dont think it will)


300,000,000 views a month and 900 posts a second is popular.


Last month, Tumblr got 200,000,000 page views and regularly only gets 38,000 posts per minute (633 posts per second). Your 'facts' are off.

GRAPHlCS i think they are doing it because google are buying alot, google just bought youtube too


Google isn't doing much of buying right now, I don't believe. They've got their hands full with Glass, what with development and some idiot losing his Glass. As well, Google bought YouTube almost 10 years ago.


My "facts" are based off of this article. Not what happened last month.

GossipPosted:

How is this website worth 1 billion dollars