Yahoo CEO Confirms Tumblr Acquisition

Yahoo CEO Marissa Mayer has confirmed that her company has acquired blogging service Tumblr for $1.1 billion. The announcement comes in a very Tumblr manner: she posted it on her own Tumblr blog.

“We promise not to screw this up,” Mayer wrote. “We will operate Tumblr independently. David Karp will remain CEO. The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve.”

What Yahoo will supposedly bring to the table, according to Mayer, is to help the blogging platform “get even better, faster.”

The deal aims to help Yahoo to tap into Tumblr’s younger, active online user base. However, it also has raised concerns among some Tumblr users who worry that Yahoo might bring in significant changes on the blogging service, including placing advertisements.

And while Mayer assures Tumblr bloggers and readers that the site will remain the same, she also tells analysts that the acquisition would give Yahoo a chance to “monetize” Tumblr in such a way that it “is meaningful… to the user experience.” Up to this point, Tumblr’s CEO and founder David Karp has resisted the use of traditional display advertising, although Tumblr users are allowed to include ads in their blogs.

Mayer has also conducted a call with investors and analysts Monday, referring to the deal as a “game changer” for her company, even comparing it to the likes of Google’s purchase of YouTube and eBay’s acquisition of PayPal. She also adds that there will be no Yahoo branding on Tumblr.

With over 300 million monthly unique visitors and 120,000 sign-ups everyday, Tumblr is one of the most popular social media sites. But while it generates a lot of traffic, some Tumblr blogs contain content that advertisers would frown upon, like pornography and the use of vulgar words in blog names.

Source: Marissa Mayr @ Tumblr, via CNN Money

Image source: Mashable

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