Yahoo Acquiring Tumblr for $1.1 Billion
Posted on May 21, 2013Yahoo has gone through with its rumored acquisition of Tumblr, a popular blogging platform. Reuters reports that Yahoo paids $1.1 billion for Tumblr. Tumblr calls Yahoo the "original Internet company" in its post about the acquisition.
Yahoo CEO Marissa Mayer boasts about Tumblr's size in her post about the acquisition. She notes Tumblr has 50 billion blog posts and adds 75 million each day. She also notes Tumblr has 300 million monthly unique visitors. There are over 100 million blogs on Tumblr. This means Yahoo paid about $3.6 per visitor or $11 per blog to acquire Tumblr.
Traffic is still what drives ad dollars on the Internet and the acquisition gives Yahoo a lot of traffic. The Onion jokes about who is behind all the Tumblr traffic with a fake news article titled, Yahoo Back On Top After Purchasing Millions Of 13-Year-Old Girls' Blogs.
Tumblr CEO David Karp said in a statement, "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. But we're elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from."