Yahoo‘s board has finalized a deal to buy blogging and social network service Tumblr for $1.1bn according to reports.
This deal is believed to be Marissa Mayer Yahoo CEO’s largest deal since taking helm of the iconic company “Yahoo “in July 2012.Yahoo intends to gain wider and younger audience through the blogging and social site Tumblr.
The $1.1bn deal would mark a significant premium on Tumblr $800m valuation when it raised money from private investors.According to the homepage on tumblr, the blogging site now hosts over 100 million blogs and a total of 50.7bn posts.
Yahoo stands one of the biggest sites in the internet world with around 600 million visitors to its websites every month.
The New York based company “Tumblr “was founded by David Karp at the age of 20 with barely any qualification then is high school certificate. David Karp network enable users to share and post short comments, pictures and videos which attracted an estimate of $125m in venture funding but gained a profit of only $ 13m last year.
Yahoo Inc declined to make any comments before the announcement but hinted that it would be streamed live.
Under the terms of the acquisition, Tumblr would continue to operate as an independent business, according to the Wall Street Journal.
Unlike its rival facebook and Google, Tumblr has been slow to pull in advertiser’s .With the new Yahoo deal; the opportunity could bring the ability to attract advertisers.
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