Yahoo agrees to pay in excess of $1bn for Tumblr

Tumblr: set to be acquired by Yahoo
Tumblr: set to be acquired by Yahoo

Yahoo has agreed a deal to buy social blogging platform Tumblr for more than $1bn (£720m).

The deal was first rumoured last week and is set to be officially announced later today.

It is thought that the Yahoo board has approved a deal worth $1.1bn to buy Tumblr after talks with founder David Karp and investors.

According to the sources quoted by AllThingsD, "the board said the deal was a foregone conclusion and was a unanimous vote by the Silicon Valley Internet giant".

It is chief executive Marissa Mayer's big gamble to turn Yahoo around and inject some cool in to the struggling internet business.

The deal will also give it a foothold in the social media world and access to the much sought-after 18- to 24-year-old audience who make up many of Tumblr's users.

Tumblr is much more than a blogging platform, like WordPress or Google's Blogger for instance, it is a social platform built with social media at its core, which is what makes it so attractive to Yahoo.

"According to numerous sources, Mayer determined quickly that the fast-growing content site, turbocharged by mountains of user-generated content, was just the kind of property that Yahoo needed to make it both "cool" and relevant to new audiences," according to AllThingsD.

Its growth as we know is attracting more advertiser attention. However, it has yet to create a solid revenue model. In November, we reported that Tumblr had set its sights on major UK advertisers.

Tumblr founder and chief executive David Karp expanded on this point in a Forbes interview in January, where he said he wanted to reinvent internet advertising.

He dismissed what Google and Facebook do as "hyper-hyper targeting of little blue links". Karp wants advertising to be more creative, more beautiful, and he hopes, more engaging.

The Tumblr deal rivals that of Facebook's $1bn bid to buy Instagram last year. There is almost certain to some kind of backlash against Tumblr as there was with Instagram, but that has not held up the latter's growth, which has gone from strength to strength.

Tumblr is one of the most high-profile and closely watched of all the second wave of social media firms that came after Facebook and Twitter.

Another possible target might have been Pinterest, but Tumblr is seen as being considerably cooler and was much talked about during the 2012 US election.

The Obama campaign particularly took to it and scored big hits with animated GIFs. Not so much for Mitt Romney’s team, but both paid a good deal of attention to it overall and helped to boost its profile further.

During the US election, we also saw how one Tumblr post became the most popular of all time with a whopping eight million shares.

In March, Tumblr passed the 100 million blogs milestone. On the way to achieving that, Tumblr has racked up more than 44.6 billion posts and has attracted an audience of roughly 170 million people per month. All that has helped it become one of the top 10 most-visited sites in the world.


Before commenting please read our rules for commenting on articles.

If you see a comment you find offensive, you can flag it as inappropriate. In the top right-hand corner of an individual comment, you will see 'flag as inappropriate'. Clicking this prompts us to review the comment. For further information see our rules for commenting on articles.

comments powered by Disqus
Brand Republic Jobs

subscribe now


Microsoft profits boosted by cloud computing drive
Oasis #springasmile digital campaign gets people doing good deeds
Coca-Cola: 'Don't approach bloggers with a fait accompli'
Tesco CMO Matt Atkinson: 'It is so important not to stereotype mothers'
McDonald's gives Ronald a new look ahead of global 'Fun times' social media push
In pictures: BrewDog opens first craft beer shop BottleDog for 'beer aficionados'
Facebook ad revenue leaps $1bn as it invests in targeting
Malteser or Maltesers? Mars takes Hershey trademark dispute to court
Apple Q2 profits top $10bn as iPhone sales soar
Lynx tells men not to leave love to fate
HBO captures awkwardness of watching sex scenes with parents
Primark to open first US stores with Boston chosen as flagship location
Marketing spend on the up but a reality check is needed before celebrating
Top 10 ads of the week: Jackpotjoy and BT Broadband fend off Kevin Bacon
Lidl beats Tesco to 10m Facebook fans
Center Parcs ad banned for encouraging parents to take kids out of school
Coca-Cola, Cadbury and Amazon named top brands for targeting youth market
Leaked document shows Nokia to be rebranded as Microsoft Mobile
Nike lays-off hardware staff in move that casts doubt on future of FuelBand
Greenpeace says save the bees or humans will die
What brands need to know about changes to VAT and online downloads in 2015
Jimmy Savile victims urged to claim compensation in new ad campaign
UKIP launches biggest  ad campaign and stirs up 'racist' accusations
Apple boss Tim Cook provides voiceover on ad touting firm's renewed green commitments
John Lewis walks consumers through its history to celebrate 150 years of business
Waitrose boosts content strategy with 'Weekend Kitchen with Waitrose' C4 tie-up
Hottest virals: Cute puppies star in Pedigree ad, plus Idris Elba and Fruyo
Amnesty International burns candles to illuminate new hope
Tom of Finland's 'homoerotic' drawings made into stamps
Toyota achieves the impossible by calming angry Roman drivers