Report: Yahoo! Board Approves Billion-Dollar Tumblr Deal

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Lucas Jackson / REUTERS

Yahoo CEO Marissa Mayer arrives for the TIME 100 gala celebrating the magazine's naming of the most influential people in the world for the past year in New York City on April 23, 2013

Updated May 19, 1 p.m. EST: AllThingsD reports that the Yahoo! board has unanimously approved a deal to purchase Tumblr for $1.1 billion. More updates to follow.

Updated May 17, 8:20 p.m. EST: Yahoo!’s board plans to meet Sunday to decide whether to approve a $1.1 billion all-cash offer for New York-based social blogging platform Tumblr, AllThingsD’s Kara Swisher and Peter Kafka reported late Friday. If approved by Yahoo!’s board, the deal — which could still fall through — will be announced Monday. Earlier Friday, Yahoo! invited reporters to a “product” event in New York City on Monday at 5 p.m.

Original post: Internet icon Yahoo! is in talks to buy New York-based social blogging platform Tumblr for as much as $1 billion, according to multiple reports. At that price, Tumblr would be pretty expensive, given that it reportedly only booked $13 million in revenue last year, but the deal could still make sense for Yahoo! That’s because Tumblr is extremely popular with the 18-to-24 year-old-set, precisely the demographic CEO Marissa Mayer is targeting as she attempts to turn the purple-hued Internet pioneer around following a multi-year slump.

Tumblr has long been considered a major prize, so it’s no surprise that Yahoo! isn’t the only one interested in the company. Tumblr has also reportedly held talks with both Facebook and Microsoft, according to Forbes. Of course, Tumblr CEO David Karp may decide to hold out — he’s reportedly raising a new venture capital round that values the company at $1 billion. Or he may opt for a “strategic investment,” in which Yahoo! or some other big company invests in Tumblr, which would then remain independent. Tumblr has already raised $125 million at an $800 million valuation.

(MOREMarissa Mayer’s Wall Street Debut Sends Yahoo! Stock Surging)

What Tumblr lacks in revenue, it makes up in “coolness.” The site has become a major destination for young urbanites to post photos, snarky comments, and other ephemera, and then share that content with others. Tumblr is also a very large and fast growing community. It had worldwide traffic of 117 million visitors in April, according to comScore data cited by AllThingsD. Tumblr claims it hosts 107.9 million blogs that have generated 50.7 billion posts.

Taken together, Tumblr’s brand appeal and growth make it an attractive target, especially for Yahoo! CEO Mayer. “If you could pick a company that fits in with what Marissa Mayer has demonstrated in her career — aesthetics, software, technology, and fast-growing — you could not land on a better choice,” one source told AllThingsD.

A Yahoo! spokesperson said the company doesn’t comment on “rumors and speculation,” and a Tumblr spokesperson did not immediately return a request for comment.

(MORECan Google Star Marissa Mayer Save Yahoo!?)

Another reason Tumblr could be attractive to Yahoo! is the frequency with which its users post on the site. Mayer wants to incorporate Yahoo!’s products — including search, email, and its popular homepage — into the “daily habits” of its users, in an echo of the “toothbrush” philosophy espoused by her former boss, Google CEO Larry Page. Yahoo! currently has massive traffic — over 700 million users worldwide — but what it doesn’t have is a social platform. Tumblr could fix that.

Mayer has made no secret that she’s on the lookout for acquisitions. And with over $4 billion in cash, she certainly has the resources to execute a blockbuster deal. In recent months, Yahoo! has reportedly been kicking the tires at Foursquare, Path, Pinterest, and Hulu, according to TechCrunch. “Literally they talk to everyone,” one source told the tech website.

Perhaps more than anything else, buying Tumblr would generate the sort of excitement that Yahoo! needs as it seeks to boost employee morale and position itself as a cool place to work amid an intensely competitive job market for engineers and programmers. Mayer has a long road ahead to complete the Yahoo! turn-around she envisions, but Wall Street likes what it has seen so far. Since assuming command of Yahoo! last July, the company’s stock price has soared by 70%.

820 comments
peblerser
peblerser

The acquisition of Tumblr by Yahoo could be a good deal for both companies. Yahoo needs innovation and the owners of Tumblr need cash. Cool things are happening in the tech world. The new Nokia 928 4G is now available. http://t.co/nFk8F3BhLA

EterPuralis
EterPuralis

In a world where everything is connected to everything else... tumblr is a place where we can get away from all of that. It's our beautiful blue hermits cave. Don't go in there and start mining out main roads.

noooooo
noooooo

Congratulations on purchasing a site used for crazy fandoms, mental breakdowns, and gay porn.  Not sure how this is going to help Yahoo.

brianna_horan96
brianna_horan96

yahooyahoo       yahoo                         yahoo

yahoo  yahoo     yahoo            yahoo               yahoo

yahoo      yahoo yahoo            yahoo               yahoo

yahoo                yahoo                          yahoo

Oumma_city
Oumma_city

That's when the change? Since his arrival nothing seems to move
I have not even been able to register my website for more servieces webmaster: http://oumma-city.com/

Aperson
Aperson

I will honestly delete my blog if yahoo buys tumblr and makes the changes that the article suggests they are going to. I don't want my email or the yahoo homepage or search on my blog. I think that what yahoo is missing is that tumblr is a blogging platform, and if they payed any attention to what the people who actually use the site want they would see that we're pretty much trying to tell them to back off.

However I would find it ironic if they did buy it (they'd better not) because so many of us use google chrome as our browser.

Basically: dear yahoo,

Stay away.

Sincerely,

All tumblr users

saomazing
saomazing

Please don't.. Leave Tumblr be. It's the only place where I can escape from a stressful life. It's the only place where I've met people that accept me fully for who I am. Please just go make your own social platform, leave Tumblr alone! We don't anything to do with you guys, Tumblr and Yahoo will never be good together, it just doesn't work. So keep your money, you would just be wasting it. 

"Another reason Tumblr could be attractive to Yahoo! is the frequency with which its users post on the site. Mayer wants to incorporate Yahoo!’s products — including search, email, and its popular homepage — into the “daily habits” of its users" 

NO.

It's obvious with all these complaints, don't do it. You do not understand Tumblr, it's not just a social platform. In fact, I personally don't even consider it one. It's a place where people express themselves, find friends from across the world, it's many things but NOT what YOU think it is. 

dramaswhoo
dramaswhoo

Terrible idea... Yahoo doesn't understand the majority of tumblr users at all.  
We feel safe there. We don't want to connect with people with know in real life. We don't want our email connected or people to see our "daily habits," whatever the heck that's supposed to mean.

Don't try to turn it into a FB or Google+. There's a reason we're on tumblr more than those sites. Create your own if you want that, instead of ruining a good site.

It sucks that Yahoo is probably really going to buy tumblr. From what I've seen, David Karp really doesn't care that much about tumblr.. I mean, at least not enough to pass up this kind of money. It really sucks because it looks like, financial-wise, someone needs to buy tumblr to be able to support it, but none of the big companies that could buy it understand it enough to do it right.

This is a sad day.

victoriakristyn
victoriakristyn

NO GOD NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NONO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NONO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NONO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO NO WHAT ARE YOU DOING YAHOO, TRYING TO RUIN OUR LIVES?! I will never in my life reblog your news and use your email SO DONT TRY AND RUIN A GOOD THING.

notthisagain
notthisagain

We lose either way if Yahoo buys Tumblr.

Either they change a lot of things and masses of people will quit, causing them to go bankrupt and shut it down.

~Or~

Yahoo will give up on it, like all the other sites they bought, and shut it down.

4utumnm
4utumnm

Now that Yahoo is buying Tumblr the users are all going to delete their blogs......so, wowwww. Good investment.

selenatiffy93
selenatiffy93

NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE NOPE

hugginu
hugginu

omg did you even look through Tumblr?

not the Hipster side

the Fandom Side

DO YOU REALLY KNOW WHAT YOU'RE GETTING INTO? OMF

SherlockedAt221B
SherlockedAt221B

HAHAHAHA UOUR FUNNY

are you honestly willing to buy a site full of hormonic teens and weirdo adults with our porn and gay ships and our own beleifs?



Everyone on that site expresses their very own opinion, which is frowned upon by people like Yahoo...

TristanCollicott
TristanCollicott

This isn't a good choice at all, just look at your demographic disagreeing. Don't waste $1 billion on ruining a website. Use it to improve your horrible services.

EterPuralis
EterPuralis

We should probably look around for a backup just in case. Anyone know any tumblr like sites?

kdogg331
kdogg331

No :( I love Tumblr and would stop going on it if Yahoo bought it. They say it has the 18-24 year old set demographic they're looking for to rebirth Yahoo! or whatever but what all these stupid adults don't realize is that we hate change and most of us hate Yahoo! so if they bought it, it would defeat the entire purpose since we would all leave and then they'd be bankrupt and worse off that where they started. DON'T buy Tumblr. Keep your grubby hands to yourselves.

Zackaran
Zackaran

Tumblr is not a social blogging platform, it is a place for the the misfits of society, the fandoms, the completely insane, porn, the bullied, and the people who have no where else to go. We dont want you to buy Tumblr. We dont want you to ruin it, change it, put ads in it, restrict it, put a bunch of copyright infringement stuff on it(likeyoutube did) or do anything with it. just leave it. try to remember, that for some people, this is all that they have.

KidCatX
KidCatX

I SAID NO! Yahoo abandons everything yhet they buy and then close it, and in the Tumblr we would see invaded by advertising, junk mail and SPAM, exactly as if we had an email account yahoo. I SAY NO to the sale of tumblr to yahoo.

I SAID NO!!!!

erinisaddictedtolife
erinisaddictedtolife

I'm pretty sure that a lot of people on tumblr currently will stop going on it if Yahoo! buys tumblr, including me. No no no! I disagree!

saramurrr
saramurrr

lets message tumblr support(:

saramurrr
saramurrr

you're kidding -_- no just no i would stop using tumblr if that happened.

EterPuralis
EterPuralis

You know what, I'd like to see them try to buy 4chan instead. That would be hilarious.

SamStewart
SamStewart

urgh please don't buy it

just no

8(

EterPuralis
EterPuralis

I'm serious. With big, sharp, pinchy screws. Even that dreadful satire version Frankenstein's monster would pale at the sight.

TraciEstep
TraciEstep

DO NOT TAKE TUMBLR, IT'S NOT OUR FAULT YOU FAILED, WHY DID YOU STOP CHAT? I MADE A LOT OF GOOD FRIENDS, MAYBE IT'S YOUR FAULT YOU DOWN IN NETWORKING

EterPuralis
EterPuralis

If yahoo touches so much as a hair on tumblr's beautiful blue body... 

Seriously, change so much as the login screen and you're screwed.

EterPuralis
EterPuralis

you forgot the infighting and the ship wars, but yeah

hugginu
hugginu

@EterPuralis There is a website called Muzy it's similar to Tumblr, there's a hipster-ish side and a fandom-ish side  

EterPuralis
EterPuralis

I understand that site even less than I do livejournal, tho :\ tumblr, why must you be so perfect T_T

EterPuralis
EterPuralis

Ew, it's facebook connected. Well, at least it's a backup. Thanks!

EterPuralis
EterPuralis

Yup, completely incomprehensible and dull