Yahoo to buy Tumblr for $1.1 billion cash says a source close to the deal according to The New York Times. It was reported on May 19, 2013, that the deal is expected to be announced soon.
This would be Marissa Mayer’s biggest acquisition so far as Yahoo’s CEO. Yahoo may have missed out so far on the social media revolution and it could be seen as an important shortcoming that can be fixed.
“Buying Tumblr is intended to help address that shortfall. The six-year-old company is one of the most popular blogging services, with over 108 million blogs. Buying the company could provide a wealth of user-generated content.”
Tumblr reportedly has also been of interest to Yahoo rival Google, Facebook, and Microsoft but firm offers were not made.
Headquartered in New York City, Tumblr is far from San Francisco and Silicon Valley which is home to most of the top social media networks. It was launched in February of 2007 and has more than 108 million blogs and over 50 billion posts to date.
User-generated content when paired with advertising seems to be a very popular and lucrative business model in use today by some of the top sites on the Internet. Millions if not billions of potential profits are at stake here. This deal could make a lot of sense.
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