Yahoo's Board Approves $1.1 Billion Deal with Tumblr

Few days back there were rumors which suggested that Tumblr Inc. was likely to turn down the deal worth $1.1 billion with Yahoo but The Wall Street Journal reportedly said on Sunday that Yahoo's board had now approved the $1.1 billion deal to purchase the popular blogging platform Tumblr Inc.. Tumblr which was founded in 2007 and has its headquarter in New York, reportedly claims to have 108 million blogs, 50 billion posts in 12 different languages and 175 employees. The website ranking site Alexa lists Tumblr as number 32 in terms of global popularity.

Tumblr actually works like Twitter or Facebook. One can use Tumbler to follow other people who also use Tumbler through a "Dashboard" and the blog posts follows on the timeline. It was also reported that Tumblr was more popular among younger Internet users. This was projected in the survey report of this year which was conducted by the online data group Survata. They also noted that Tumblr was more popular than Facebook among 13 to 25 aged ones.

It was also reported that Tumblr's 26-year-old CEO David Karp, according to the deal would be able to function autonomously. However, All Things D reported saying that Karp would be set for a four-year contract to stay with Tumblr.

If this acquisition is thought to be a done deal than this would be the biggest deal for Yahoo since Marissa Mayer took over as chief executive last year. Mayer seems to have been looking to bring Yahoo to its best by focusing on the social media and mobile Internet.

Tumblr had a very less sources to generate its revenues but this tie with Yahoo family may supposedly bring in some really good resources for new advertising and other revenue sources. This may put Tumblr's people at ease.

It was further reported, Trip Chowdhry saying that the deal could make sense if Yahoo would create incentives for the Tumblr team, at Global Equities Research.

Reportedly, Katherine Barna, a spokeswoman for Tumblr, was said to have failed to respond to the multiple requests for comment. Sara Gorman, a spokeswoman for Sunnyvale, California-based Yahoo, declined to comment as well. However, It was reported that, Yahoo has scheduled a press event in New York on Monday to officially unveil updates to its Flickr photo-sharing site, a person familiar with the matter told Bloomberg News. While Tumblr is based in New York, there were no mentions regarding its billion dollar deal with Tumblr what so ever.