Yahoo rumored to be buying Tumblr for $1 billion

Yahoo rumored to be buying Tumblr for $1 billion
With Yahoo trying to make itself relevant once again to the young and hip, the company is rumored to be on the verge of shelling out $1 billion for hosting site Tumblr. This could easily be a win-win deal as Yahoo needs the infusion of young blood while Tumblr is looking for liquidity. There is speculation that Yahoo CEO Marissa Mayer has had her eye on the company for a while and has already met with its executives including Tumblr founder and CEO David Karp.

Tumblr has raised $125 million at a valuation of $800 million, so a $1 billion price tag would certainly be in the ballpark, especially since the microblogging site starting adding mobile ads to its mobile app in March. Over the past 6 months, the number of those using Tumblr's mobile app has quadrupled. Tumblr's growth is right now off the charts. The company had $13 million in revenue last year and is expecting as much as $100 million this year.

Yahoo has been shutting down many of its mobile apps and one estimate is that 80% of the company's apps could be gone by the end of the year. But a purchase of Tumblr would add a mobile app that could revitalize Yahoo in the mobile space, where it has yet to make a name for itself.

source: AllThingsD

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11 Comments

1. Meleagru

Posts: 92; Member since: Dec 03, 2012

I can't believe Yahoo even has one billion dollars

8. gmracer1

Posts: 646; Member since: Dec 28, 2012

Either way, they're gonna screw up Tumblr.

2. pongkie

Posts: 663; Member since: Aug 20, 2011

noooooooooooooooooooooooooooooo

3. breathlesstao unregistered

...no. Just don't.

4. speckledapple

Posts: 902; Member since: Sep 29, 2011

Wow I must say that i am surprised as I did not know that Yahoo was still in the acquiring business. There were rumors of Microsoft buying them not too long ago now they are in the market of buying one of the most popular newer web companies out there. Very interesting.

5. taikucing unregistered

what is yahoo?

11. InspectorGadget80 unregistered

Yahoo a chocolate milk drink. YAHOO Nothing but to do it

6. decent4u

Posts: 75; Member since: Apr 26, 2012

i think they have a extra billion dollars lying around, first they made an offer to zuckerberg (1 billion dollars for Facebook) and now to this ;)

7. lubba

Posts: 1313; Member since: Jan 17, 2011

My guess is Marrisa Myers, the celebrity CEO will destroy Yahoo.

9. downphoenix

Posts: 3165; Member since: Jun 19, 2010

Given Yahoo's history on having the chance to buy companies like Facebook and Google... it may be in their best interest to pursue this at all costs.

10. InspectorGadget80 unregistered

That's a small chunk of change. How does yahoo even have 1 billion dollars?

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