As expected, Yahoo and Tumblr announced today that they have reached a definitive agreement for Yahoo to acquire Tumblr. As per the agreement, Yahoo will be work as an independent entity for the company while David Karp will remain CEO. The product, service and brand will remain be defined and developed separetly with the same Tumblr irreverence.
Tumblr having more than 300 million monthly unique visitors and see 120,000 signups every day is one of the fastest growing media networks in the world. The blogging site sees 900 posts per second and 24 billion minutes spend on site each month. On mobile, over hald of Tumbl’s users are using the mobile app and do an average of 7 sessions per day. The acquisition is expected to lead Yahoo’s audience to grow by 50 percent to more than a billion monthly visitors and grow traffic by approximately by 20 percent.
“Tumblr is redefining creative expression online,” said Yahoo! CEO Marissa Mayer. “On many levels, Tumblr and Yahoo! couldn’t be more different, but, at the same time, they couldn’t be more complementary. Yahoo is the Internet’s original media network. Tumblr is the Internet’s fastest-growing media frenzy. Both companies are homes for brands – established and emerging. And, fundamentally, Tumblr and Yahoo! are both all about users, design, and finding surprise and inspiration amidst the everyday.”
The acquisition cost is approximately $1.1 billion all of which is payable in cash while the transaction is expected to close in the second half of the year.