Yahoo has confirmed that it has reached a definitive agreement to acquire blog website Tumblr, which will be independently operated as a separate business and keep David Karp as CEO. Yahoo will pay USD 1.1 billion for Tumblr. Subject to customary closing conditions, the transaction is expected to close in the second half of the year.
Tumblr has over 300 million unique visitors and 120,000 signups a day, making it one of the world’s fastest growing media networks. Over half of Tumblr’s users are using the mobile app, for an average of 7 sessions a day.
The combination of the two companies is expected to grow Yahoo’s audience by 50 percent to over 1 billion monthly visitors, and to raise traffic by approximately 20 percent, according to Yahoo. It writes that the companies will work together to create advertising opportunities that are seamless and enhance the user experience.
