Yahoo’s board approves deal to buy Tumblr

Yahoo’s board approves deal to buy Tumblr

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The Wall Street Journal reported on Sunday, May 19th that The Yahoo Inc. board of directors agreed to pay $1.1 billion for six-year-old social networking site Tumblr. Tumblr has over 110 million users but only generated $13 million in revenue last year. New York-based Tumblr, founded in 2007 by David Karp, has 175 employees and over 108 million blogs. The website ranking site Alexa lists Tumblr as number 32 in terms of global popularity.It had more than 67 million unique visitors in April, according to Quantcast.

In 2012 competitor Facebook, acquired Instagram and Google bought YouTube in 2006. Morgan Stanley estimates that YouTube is on track to generate over $700 million in operating income.

Yahoo is planning a large press conference in New York Monday.