Yahoo has just announced that they have completed the acquisition of popular blogging platform Tumblr in may. Yahoo reportedly payed $1.1 billion for Tumblr, in cash. For a comparison, that’s just a little more than Facebook paid for Instagram last summer.
Tumblr is set to help modernize Yahoo, and Yahoo is set to help Tumblr with advertising.
The deal offers unique opportunities for both companies. Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. With more than 50 billion blog posts (and 75 million more arriving each day), Tumblr can bring complementary content to Yahoo!’s media network and search experiences. Yahoo! will support Tumblr’s efforts to create advertising opportunities that are seamless and enhance the user experience.
Yahoo CEO Marissa Mayer said “Tumblr is an incredible company. I’m thrilled to officially welcome David and his team to Yahoo!,” said
From the beginning, Yahoo has promised that Tumblr will remain independent. Yahoo reiterates that pledge today with the news of the finalized acquisition.
Karp said “We are beyond excited to partner with Marissa and the wonderful team at Yahoo! that we’ve already come to know well. Their support and belief in our vision gives us an opportunity now to be the most ambitious we’ve ever been.”