Today Yahoo announced plans to acquire Tumblr for an astounding $1.1 billion. Yahoo states in their press release that “Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain 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.”
Marissa Mayer, CEO of Yahoo!, states “Tumblr is redefining creative expression online. On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. 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.”
The deal should be done in the second half of the year, and should increase Yahoo’s reach and audience. More specifically, “The combination of Tumblr+Yahoo! is expected to grow Yahoo!’s audience by 50 percent to more than a billion monthly visitors, and to grow traffic by approximately 20 percent.”
So what do you think about this acquisition. Excited about what it can become or worried about Yahoo’s side of the equation? Let us know!