Tumblr To Move Under The Yahoo Umbrella
May 20, 2013

Yahoo Purchase Of Tumblr Confirmed

Michael Harper for redOrbit.com — Your Universe Online

Last Thursday All Things D broke the story of Yahoo´s intentions to buy popular blogging service Tumblr for $1.1 billion. At the time, the move was pending approval by the board in a Sunday afternoon vote. The $1.1 billion all-cash deal was apparently approved as Yahoo CEO Marrisa Mayer woke up early Monday morning to Tweet: “I´m delighted to announce that we´ve reached an agreement to acquire Tumblr! We promise not to screw it up.”

Mayer also got in the Tumblr spirit with an animated Gif with a play on the “Keep Calm and Carry On” meme. Tumblr CEO David Karp will remain in his position and has announced the news on his own Tumblr page, noting that their headquarters will not be moving and their team will not be changing.

According to an earlier All Things D story, (there were several this weekend) the Yahoo/Tumblr deal shares some similarities with the Facebook/Instagram deal last year.

Tumblr will generally remain the same; they´ll be allowed to operate as their own company, but with Yahoo´s backing. Just as Instagram CEO Kevin Systrom had done last year, Tumblr´s CEO stands to earn a hefty pile of cash from this deal.

Yahoo´s take away from the deal will be a certain “cool” factor which cannot be defined in words or monetary values. Tumblr is a hit with younger audiences, allowing teens and college students to have their own place on the web to post their thoughts or, more often, collect pictures and Gifs they find from the Internet. Mayer reportedly has a long view for the future of Yahoo, looking to capture the interest of these young people in hopes of turning them into lifelong Yahooers.

All Things D´s sources say this deal began nearly six weeks ago as Yahoo began to discuss how they could incorporate themselves into Tumblr´s infrastructure.

"On many levels, Tumblr and Yahoo! couldn't be more different, but, at the same time, they couldn't be more complementary,” said Mayer in a press statement released this morning.

“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."

According to the Yahoo statement, Tumblr now sees 300 million unique visitors every month with 120,000 signups every day. What Yahoo (assumedly) really likes about Tumblr, however, is their mobile interaction. More than half of Tumblr´s users post on the go with the mobile app and do so at a rate of seven sessions per day.

All told, Yahoo expects to grow their audience by about 50 percent while increasing traffic by 20 percent. They´ve also kindly promised to work together with Tumblr to begin creating “advertising opportunities that are seamless and enhance the user experience.”

With the deal done and announced, (it´s still subject to closing conditions, of course) many are beginning to consider the future of Tumblr´s “naughty” side; namely, the stores of pornography freely available across the site. The blogging service has earned their level of popularity by allowing any user to create a page and post just about anything they like there. In true Internet fashion, this formula has led to users posting plenty of pornographic images and animated gifs.

It´s left to be seen, of course, if Mayer and Yahoo will implement and enforce a “No Porn” rule for the site or continue to sweep it under the rug.