Yahoo acquires Tumblr for $1.1 billion

It’s no surprise that Yahoo has today announced the acquisition of  blogging site Tmblr for approximately $1.1 billion in cash.  The deal exceeds Facebook’s $1 billion acquisition of photo sharing app Instagram.
Prior to the confirmation of the deal, news of talks between the two companies was broken by All Things D. The technology news site has also reported that Tumblr were in talks with Facebook, Google, Microsoft and Twitter earlier this year about a possible deal yet no other offers were reportedly made.
The official press release from Yahoo states that, “Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO. The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators.”
In addition Yahoo explains how the deal offers unique opportunities for both companies saying, “Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences. The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.”
CEO of Tumblr, David Karp assured the Tumblr community, that  “Our team isn’t changing. Our roadmap isn’t changing. And our mission “” to empower creators to make their best work and get it in front of the audience they deserve “” certainly isn’t changing. But we’re elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from.”
The transaction is expected to close in the second half of the year.