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.

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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.


Marissa Mayer Introduces New Perks to Yahoo Employees

Marissa Mayer, CEO of Yahoo!, has generated lots of company buzz with her policy changes. A few months ago she terminated the office’s work-from-home option, raising debates throughout the high-tech world.

Recently, however, Yahoo announced that it will be doubling the amount of paid leave for new mothers. Fathers will be given 8 weeks off, while mothers will receive 16. The new policy brings Yahoo closer to other Silicon Valley companies such as Google and Facebook.

“Over the last several month, we’ve introduced new benefits like free food to make Yahoos’ days easier, new smartphones to encourage innovation, and updated computers to speed productivity,” Yahoo said in a statement. “Recently, we rolled out some new and improved benefits to support the happiness and well-being of Yahoos and their families.”

Despite Mayer cracking down on certain aspects of the company, she has also installed several perks for employees. Yahoo now offers branded gifts for new children and pets, as well as up to $5oo worth of “daily habits” such as daycare or dry cleaning. Mayer explained that her new in-office policy is not a “broad industry view” of the practice, but “about what is right for Yahoo right now.”
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