Yahoo! will buy Tumblr for $1.1 billion in an all-cash deal that is expected to close in the second half of this year. The company has already moved its official blog to yahoo.tumblr.com as its first act of commitment to the blogging platform.
“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO,” Yahoo! stated. “The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators.”
Yahoo! CEO Marissa Meyer also posted on her company's new Tumblr. She estimated that the takeover could grow Yahoo!’s audience by 50 percent—to more than a billion monthly visitors—and increase traffic by about 20 percent. She said the acquisition will see Tumblr bring in about 50 billion posts to Yahoo!’s media network and search experiences, and the two companies would also be leveraging the “seamless” advertising opportunities.
Tumblr’s CEO David Karp too put up a post announcing the deal. He took care to mention that although Yahoo! has acquired Tumblr, the blogging platform's headquarters, team and roadmap remain the same.
He also said Tumblr will have more resources to draw from. “Yahoo is the original Internet company, and Marissa and her team share our dream to make the Internet the ultimate creative canvas. I couldn’t be more excited to have her help. We also share a vision for Tumblr’s business that doesn’t compromise the community and product we love,” he added.
The announcement comes after days of speculation about a deal between the two companies. This morning, it was revealed that Yahoo!’s board finally approved the deal for $1.1 billion, and had given the company the go ahead. Although a lot of Tumblr users are not too pleased about the news, this deal is set to benefit both companies.