WASHINGTON — Yahoo! is in the process of buying the popular social media platform Tumblr for $1.1 billion cash, which Yahoo! announced yesterday morning.
This is a big and bold move by Yahoo! CEO Marissa Mayer, who is revamping the struggling Internet giant by purchasing a popular blogging site that brings in visitors but is not focused on a strong revenue model. It is one of the biggest moves since Mayer took reign of the Internet company.
Yahoo! is struggling with business and Web traffic, and Mayer’s commitment to revitalizing the company is taking shape.
Tumblr’s CEO and founder David Karp will remain on board at the same position in the new merger. The Yahoo! statement said that “Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business”. Yahoo! expects up to 50% increase in online visitors and is catering to a younger audience.