Yahoo! to acquire Tumblr, promises “not to screw it up”

21 May,2013

By A Correspondent

 

Yahoo! Inc and Tumblr announced yesterday that they have reached a definitive agreement for Yahoo! to acquire Tumblr.

 

“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,” a communique notes. “David Karp will remain CEO. The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators.”

 

With over 300 million monthly unique visitors and 120,000 daily registrations, Tumblr is one of the fastest-growing media networks globally. Its popularity and engagement among creators, curators and audiences of all ages brings a new community of users to the Yahoo! network. The combination of Tumblr+Yahoo! is expected to grow Yahoo!’s audience by 50 percent to more than a billion monthly visitors, and to grow traffic by approximately 20 percent.

 

The deal offers unique opportunities for both companies. Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences. The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.

 

The total consideration is approximately $1.1 billion, substantially all of which is payable in cash.

 

“Tumblr is redefining creative expression online,” said Yahoo! CEO Marissa Mayer. “On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. ”

 

David Karp, CEO of Tumblr, addressed the Tumblr community, “Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing. But we’re elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from.”

 

The transaction, which is subject to customary closing conditions, is expected to close in the second half of the year.

 

It may be remembered that in July last year, Amitabh Bachchan moved his blog to Tumblr. The former Tumblr editor-in-chief had then written on the staff blog: “…he’s right here on your dashboard. Go give him a warm welcome and a hearty follow-click.”

 

 

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