Internet giant Yahoo! has ended days of speculation and announced its intent to acquire online blogging platform Tumblr for US$1.1bn.
Under the deal, Tumblr can deploy Yahoo!’s personalisation technology and search infrastructure to help its users discover creators, bloggers and content. The two companies will also work together to create advertising opportunities.
Tumblr brings 50bn blog posts (and 75m more arriving each day) to Yahoo!’s media network and search experiences.
Yahoo! said in a statement it expects the acquisition to increase Yahoo!’s audience by 50pc to more than 1bn monthly visitors and to grow traffic by about 20pc.
Yahoo! also stated that David Karp will remain as CEO of Tumblr.
“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,” Yahoo! said.
“The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators.”
Yahoo! CEO Marissa Mayer said that while the two companies are different, they complement each other.
“Yahoo! is the internet’s original media network. Tumblr is the internet’s fastest-growing media frenzy,” Mayer said.
“Both companies are homes for brands – established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.”
Karp said Tumblr’s team, roadmap and mission – to empower creators to make their best work and get it in front of an audience – isn’t changing.
“We’re elated to have the support of Yahoo! and their team who share our dream to make the internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from,” Karp said.
The acquisition, which is subject to customary closing conditions, is expected to close in the second half of the year.