Yahoo has announced the acquisition of blogging platform Tumblr. The search engine has payed $1.1 billion for the site, mostly in cash, after reports on an impending deal first surfaced last week. It says it will keep it as an independent company, with founder David Karp at the helm as CEO. “The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators,” it writes.
The deal is set to close during the second half of this year.
Tumblr users are not happy about to acquisition. Karp has also weighed in with his own announcement about the deal, emphasizing the same independence line: “We’re not turning purple,” he wrote:
“We’re not turning purple. Our headquarters isn’t moving. Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing.”
In addition, Karp explains that joining up with the “original Internet company,” will aide users in getting more resources to create the “ultimate creative canvas.”
Marissa Mayer, CEO of Yahoo, has decided to join the Tumblr fad by firing up her very own Tumblr account. She then posted a photo on her account to respond to all negativity.
Karp and Mayer are trying to convince everyone that they will not screw this up” – but there are plenty of business reasoning behind the acquisition.
- The merger give Yahoo access to younger users – Tumblr is strongest between 18-24.
- Yahoo wants Tumblr’s current 300 million monthly unique visitors, which is growing by 120,000 signups every day, “one of the fastest-growing media networks in the world” with 900 posts per second and 24 billion minutes spent on site each month.
- Yahoo wants to focus on mobile, which Tumblr already is strong in. More than half of Tumblr’s mobile users using the mobile app on an average of 7 sessions per day.
- Yahoo says it expects Tumblr to expand Yahoo!’s audience by 50% to more than a billion monthly visitors, and to grow traffic by approximately 20%.