Yahoo! buys Tumblr for $1.1bn

 
Suzie Neuwirth

STRUGGLING internet company Yahoo! today announced that it has acquired blogging site Tumblr for $1.1bn (£720m) and that it promises “not to screw it up”.

Tumblr is a low-revenue company but with high visitor traffic, which Yahoo! hopes will grow its audience by 50 per cent and its traffic by around 20 per cent.

The deal is the largest that chief executive Marissa Mayer has made since joining from Google last year.

Analysts have called the acquisition a big bet for the company, which is hoping to claw back its market position against heavyweight competitors such as Google and Facebook.

Yahoo! has said that Tumblr will be independently operated as a separate business by the same team.

“Tumblr is redefining creative expression online,” said Yahoo! chief executive 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.”