Yahoo to Purchase Tumblr for $1.1 Billion

News

/ May 19, 2013

According to the Wall Street Journal, sources close to search engine giant Yahoo believe the company’s board has agreed to purchase micro-blogging siteTumblr.

Yahoo will reportedly buy the popular social networking website for $1.1 billion, a million dollars more than the rumored original figure.Yahoo’s acquisition of the six-year-old website gives the multinational Internet corp. a lofty investment for years to come. Recent reports state Tumblr generated $13 million in revenue last year, yet the micro-blogging platform is continually looking for innovative ways to monetize.

Sources believe Tumblr will continue to operate as an independent business, while Yahoo looks to generate additional income through the site by selling ads. The deal is expected to be confirmed and publicized, as soon as Monday, May 20.