Yahoo Buys Tumblr for $1.1 Billion

Yahoo TumblrYahoo is buying Tumblr, the popular blogging service, for $1.1 billion in cash. The acquisition will aid Yahoo in its efforts to expand its reach to younger users and give the brand a much needed boost.

CEO Marissa Mayer has initiated many controversial changes within the company. This bold move to rejuvenate Yahoo by co-opting an online property with significant traffic but little revenue is not devoid of risk.

Mayer explained in an interview that by combining the sites, Yahoo will be able to attract additional advertisers and retain site visitors.

“Tumblr in terms of users and traffic is an immediate growth story for us,” she said.

Yahoo has stressed that it is sensitive to concerns that it may impact Tumblr in a negative way, and will make sure to avoid making the network less irreverent or more corporate.

“Per agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,” Yahoo stated.

 

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James Fishman has been involved in the world of online magazines for more than 15 years. He helped launch Sunstone Online and continues to improve the magazine as site editor and administrator. His writing focuses primarily business and technology. To be in touch with James, feel free to contact him at james[at]sunstoneonline.com.

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