Yahoo! Inc. (NASDAQ:YHOO) has confirmed in a blog post that they are acquiring Tumblr. As we reported earlier, the deal is worth approximately $1.1 billion, mostly in cash. Tumblr will operate independently with David Karp as the CEO. The deal is expected to close towards the second half of the year.
“Tumblr has built an amazing place to follow the world?s creators. From art to architecture, fashion to food, Tumblr hosts 105 million different blogs. With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of thefastest-growing media networks in the world. Tumblr sees 900 posts per second (!) and 24 billion minutes spent onsite each month. On mobile, more than half of Tumblr?s users are using the mobile app, and those users do an average of 7 sessions per day,” said Yahoo! CEO Marissa Mayer in a blog post on Tumblr. “Tumblr?s tremendous popularity and engagement among creators, curators and audiences of all ages brings a significant new community of users to the Yahoo! network. The combination of Tumblr+Yahoo! could grow Yahoo!?s audience by 50% to more than a billion monthly visitors, and could grow traffic by approximately 20%.”
Mayer went on to say that Tumblr will be able to deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. Tumblr is bringing 50 billion blog posts to Yahoo!’s media network and search experiences. Tumblr and Yahoo! will work together to create advertising opportunities.
The acquisition is subject to customary closing conditions.