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| Photo courtesy of TechCrunch |
After some rumblings of this happening, the gang over at AllThingsD have pretty much confirmed that Yahoo will be acquiring Tumblr for $1.1 billion. The deal was put out there to Tumblr and was just awaiting approval form Yahoo’s board of directors. Permitting that Tumblr will accept the terms & conditions of the deal, this will be a big acquisition for Yahoo under the Marissa Mayer era. More on the deal below.
Yahoo is expected to officially announce the deal and its terms at a press event happening in NYC at 5PM. The deal would be modeled similar to when Facebook acquired Instagram last April. Tumblr’s CEO David Karp will get most of the $$$ form the deal as he will have to stay at Yahoo for 4 years and retain control of the company. After the acquisition, Tumblr will remain its own company other than Yahoo taking more control of their ads. Tumblr previously held discussions with other big name companies like Facebook, Google, Microsoft, etc. but yahoo was the only one who put a bid in.
Yahoo via AllThingsD (1), (2)
