/// Yahoo Tumblrs for Cool: Board Approves $1.1 Billion Deal as Expected

May 19, 2013  |  All Things Digital

The Yahoo board has approved a massive $1.1 billion all-cash deal to buy Tumblr. Sources close to the board said the deal was a foregone conclusion and was an unanimous vote by the Silicon Valley Internet giant. The deal will be announced Monday morning, said numerous sources. AllThingsD.com initially broke the story of the acquisition efforts and later followed up with details of the price and the board meeting that took place today earlier this week . There were no other competing bids, despite reports, to snap up the New York-based hipster blogging service. As part of the deal, Tumblr CEO David Karp — who got a windfall of cash from the deal — will stay at Yahoo for four years at least and retain much control over the service, much in the same way Instagram CEO Kevin Systrom does at Facebook. But, as there, Yahoo will undergird Tumblr’s nascent advertising business with its large and established infrastructure. Yahoo had been mulling some kind of deal with the hip New York-based blogging site, from a strategic investment to an outright acquisition, for about six weeks. Sources said that the Silicon Valley Internet giant’s CEO Marissa Mayer has decided that buying Tumblr was going to be “the stake in the ground of what her strategy is going forward for Yahoo.” And that is to attract younger audiences with just the kind of user-generated content Tumblr has pioneered to huge growth. According to numerous sources, Mayer determined quickly that the fast-growing content site, turbocharged by mountains of user-generated content, was just the kind of property that Yahoo needed to make it both “cool” and relevant to new audiences. Yahoo is looking to undergird its strong set of existing media offerings to appeal to a different audience and also get into the social space via consumer-based software solutions that are both elegant and easy to use

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Yahoo Tumblrs for Cool: Board Approves $1.1 Billion Deal as Expected

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