Rumor: Yahoo! Inc. (YHOO) in talks for buying out Imgur

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Yahoo! Inc. (NASDAQ:YHOO) is reportedly talking to Imgur about buying them out. Imgur is a popular photo sharing website that is commonly used by the Reddit.com community. The rumors are based on sources with Business Insider.

Business Insider cited an unnamed source with knowledge on the deal that claims it is “serious.” The price of the deal is not yet known. Yahoo! would likely have to offer somewhere between $100 million and $500 million based on the traffic that Imgur receives. Imgur receives around 100 million unique visitors per month. Reddit now sends less than 50% of the website’s traffic, but they were highly dependent on them in the past.

Yahoo!’s last transaction for a major social media company was Tumblr at a price of $1 billion. Tumblr also drives a lot of traffic to Imgur.

Yahoo! uses Imgur for some of their image-hosting needs as well. Imgur has less than 10 employees and is profitable.

Imgur created the custom infrastructure for Yahoo!’s sports properties to support uploading and hosting for users that want to upload avatars and other images for their fantasy leagues. That feature was labeled as “powered by Imgur.” Imgur offers similar services for Stack Exchange and Virgin music.

Yahoo! Inc. (YHOO) has been on an acquisition tear ever since Marissa Mayer was named CEO. Under her leadership, Yahoo! acquired companies like Stamped, OnTheAir, Snip.it, Jybe, Summly, Alike, GoPollGo, Astrid, MileWise, Loki Studios, Tumblr, Playerscale, GhostBird Software, Rondee, Qwiki, Xobni, Rockmelt, Lexit, Hitpost, Bread, and LookFlow.

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