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Yahoo rumored to be buying Tumblr for $1 billion

Posted: , by Alan F.

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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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posted on 17 May 2013, 00:44 6

1. Meleagru (Posts: 92; Member since: 03 Dec 2012)

I can't believe Yahoo even has one billion dollars

posted on 17 May 2013, 08:08 4

8. gmracer1 (Posts: 646; Member since: 28 Dec 2012)

Either way, they're gonna screw up Tumblr.

posted on 17 May 2013, 00:45 3

2. pongkie (Posts: 655; Member since: 20 Aug 2011)


posted on 17 May 2013, 01:08 3

3. breathlesstao (unregistered)

...no. Just don't.

posted on 17 May 2013, 01:25

4. speckledapple (Posts: 892; Member since: 29 Sep 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.

posted on 17 May 2013, 01:39 3

5. taikucing (unregistered)

what is yahoo?

posted on 17 May 2013, 17:11

11. InspectorGadget80 (unregistered)

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

posted on 17 May 2013, 03:13

6. decent4u (Posts: 75; Member since: 26 Apr 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 ;)

posted on 17 May 2013, 06:32 3

7. lubba (Posts: 1313; Member since: 17 Jan 2011)

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

posted on 17 May 2013, 15:18

9. downphoenix (Posts: 3165; Member since: 19 Jun 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.

posted on 17 May 2013, 17:09

10. InspectorGadget80 (unregistered)

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

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