Yahoo to buy blog-maker Tumblr for US$1.1b
Yahoo’s board has approved a deal to purchase the popular blogging platform Tumblr for US$1.1 billion (HK$8.5 billion) in cash, according to a report on Monday.
Yahoo’s board has approved a deal to purchase the popular blogging platform Tumblr for US$1.1 billion (HK$8.5 billion) in cash, according to a report in The Wall Street Journal.
The deal, if confirmed, would be the largest for Yahoo! since Marissa Mayer took over as chief executive last year and could help the struggling internet pioneer regain traction with younger internet users.
Neither Yahoo nor Tumblr commented on the report. But Mayer has scheduled a news conference in New York on Monday at which the company said it will unveil “something special.”
Yahoo has been looking at a range of acquisitions since Mayer took over as chief executive last year and vowed to revive the company, which has faded in the face of competition from Google.
Tumblr could be key to Yahoo’s strategy because of its popularity with younger Internet users. A survey this year conducted by the online data group Survata found Tumblr more popular than Facebook among those aged 13 to 25.
While Tumblr generates very little cash, bringing it in the Yahoo! family could offer the potential for new advertising and other revenue sources.