Yahoo Acquires Tumblr for $1.1 Billion
By on May 20th, 2013

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 Acquires Tumblr

Yahoo’s stock was down 0.3% Friday, trading at $26.50 a share.

Update:

Yahoo! also made an announcement that it’s official blog is now located at yahoo.tumblr.com

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Author: Joel Fernandes Google Profile for Joel Fernandes
Joel Fernandes (G+) is a tech enthusiast and a social media blogger. During his leisure time, he enjoys taking photographs, and photography is one of his most loved hobbies. You can find some of his photos on Flickr. He does a little of web coding, and maintains a tech blog of his own - Techo Latte. Joel is currently pursuing his Masters in Computer Application from Bangalore, India. You can get in touch with him on Twitter - @joelfernandes, or visit his Facebook Profile for more information.

Joel Fernandes has written and can be contacted at joel@techie-buzz.com.

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