Yahoo! Inc. (NASDAQ: YHOO) and Tumblr announced today that they have reached a definitive agreement for Yahoo! to acquire Tumblr.
Per the agreement, Tumblr will be independently operated as a separate business.
David Karp will remain CEO.
Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they love.
In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences, according to Yahoo!.
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It was stated that the two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.
Total consideration is approximately $1.1 billion, substantially all of which is payable in cash, said Yahoo! in a statement. The transaction is expected to close in the second half of the year.
Founded by David Karp in 2007, Tumblr is headquartered in New York City.