Photo: Yahoo + Tumblr
Yahoo Board of Directors has just approved the acquisition of micro-blogging and social media network Tumblr in a $1.1 Billion cash deal, according to the Wall Street Journal.
Tumblr was created in 2007 and quickly became a popular web destination to post texts, photos and video. Its popularity is due in great part to the ease content can be posted to the Tumblr platform. Yahoo is buying Tumblr’s huge audience since its revenue base is relatively low. The company just started posting ads last year to earn digital ad dollars.
Tumblr will bring approximately 117 million monthly unique visitors to Yahoo. The site gets about 90 million daily posts. The 26-year-old founder David Karp is a high school drop out that could become a newly minted billionaire once the deal is completed.
The company is expected to operate independent of Yahoo according to Wall Street Journal sources. Yahoo CEO Marissa Mayor is expected to make an official announcement of the acquisition on Monday. Yahoo is one of the more popular web destinations for Latinos with its Yahoo! En Español offering.
In Latin America Yahoo reaches one out of every two Internet users. Here in the states more than 80 percent of all U.S. Latino use some type of Yahoo product or service, according to Armando Rodriguez, Vice President & Managing Director of Yahoo! LatAm & US Hispanic.