NEW YORK: Yahoo! unveiled its biggest deal yet under chief Marissa Mayer yesterday, snagging blogging platform Tumblr for $1.1bn in a move to get younger users into the orbit of the struggling Internet pioneer.
The two firms confirmed weekend reports of the tie-up, a deal which keeps the fast-growing Tumblr largely independent while integrating technology and advertising opportunities. “Tumblr is a game changer,” Mayer said in a conference call discussing the acquisition.
“Tumblr is one of the fastest growing media networks in the world,” and “brings a significant new community of users to Yahoo!” she added. “This will grow Yahoo! users by 50 percent.”
The companies said the deal is worth $1.1bn, “substantially all of which is payable in cash.” Yahoo! chief financial officer Ken Goldman said it includes “a small amount of stock” for Tumblr founder and CEO David Karp.
Mayer said Tumblr would operate independently but that the groups would “work together to create advertising opportunities that are seamless and enhance user experience.”
“We promise not to screw it up,” Mayer said in a blog post on Tumblr, as Yahoo! moved its official company blog to the new platform.
“The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve.”
Karp, in his own blog post, said he was “elated” about the tie-up and sought to allay staff concerns about any changes. “We’re not turning purple,” he wrote. “Our headquarters isn’t moving. Our team isn’t changing. Our roadmap isn’t changing... So what’s new? Simply, Tumblr gets better faster. The work ahead of us remains the same — and we still have a long way to go! — but with more resources to draw from.”
AFP
