The acquisition is now official. Yahoo! in an official statement announced the acquisition of popular blogging platform Tumblr for approximately $1.1 billion, all in cash. In comparison, it’s just a little more than what Facebook paid for Instagram last summer.
In a blog post, Yahoo CEO Marissa Mayer promises that it “won’t screw it (Tumblr) up.” The CEO said that it plans to run Tumblr independently, and Tumblr founder David Karp will remain in his role as CEO. Mayer says that Yahoo will be helping Tumblr to “get even better, faster.”
With this acquisition Yahoo adds itself to the list of established Internet companies, including Google and Facebook that have spent more than $1 billion to acquire startup companies in hope of expanding their services and gaining an edge in growth.
Many Tumblr users are now worried whether Yahoo would screw it up, however, CEO Marissa Mayer has promised to evolve Tumblr to a better and faster blogging platform. She adds, “both Tumblr and Yahoo! share a vision to make the Internet the ultimate creative canvas by focusing on users, design – and building experiences that delight and inspire the world every day.”
On the other hand, this acquisition could be a part of Yahoo’s rebuilding strategy, which the company has been trying to build stronger core for the last couple of years.
Here’s how Mayer made the announcement:
Yahoo’s stock was down 0.3% Friday, trading at $26.50 a share.
Yahoo! also made an announcement that it’s official blog is now located at yahoo.tumblr.com