Yahoo confirms $1.1 billion Tumblr acquisition
2013-05-20 09:22 by Daniela
Tags: Yahoo, Tumblr
Yahoo confirmed early Monday morning that it is buying the microblogging service Tumblr in a deal worth about $1.1 billion. Under the terms of the deal, Yahoo will allow Tumblr, which has over 300 million monthly unique visitors, to operate as a completely separate entity. The company's founder and CEO David Karp will remain in his position. "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," Karp said on Monday in a statement. "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." "Tumblr can deploy Yahoo!'s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they'll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!'s media network and search experiences. The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience." Founded six years ago, Tumblr has attracted a loyal following and raised millions from big-name investors. Still, it has not proved that it can be profitable, nor that it can succeed on mobile devices, which are becoming the gateway to the Internet. Read more -here-
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