Yahoo! has agreed a deal to acquire blogging and media sharing platform Tumblr for approximately $1.1 billion (£724 million). Tumblr will continue to operate as a separate business with David Karp as CEO.
More than 300 million people visit Tumblr every month; more than half of Tumblr’s users are said to be using the mobile app.
Marissa Mayer, CEO of Yahoo!, said “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. I've long held the view that in all things art and design, you can feel the spirit and demeanor of the creator. That's why it was no surprise to me that David Karp is one of the nicest, most empathetic people I've ever met. He's also one of the most perceptive, capable entrepreneurs I've ever worked with. David's respect for Tumblr's community of creators is awesome. I'm absolutely delighted to have him join our team.”
The deal is expected to be completed in the second half of this year.
[Yahoo! blog post]