Yahoo is buying Tumblr, the popular blogging service, for $1.1 billion in cash. The acquisition will aid Yahoo in its efforts to expand its reach to younger users and give the brand a much needed boost.
CEO Marissa Mayer has initiated many controversial changes within the company. This bold move to rejuvenate Yahoo by co-opting an online property with significant traffic but little revenue is not devoid of risk.
Mayer explained in an interview that by combining the sites, Yahoo will be able to attract additional advertisers and retain site visitors.
“Tumblr in terms of users and traffic is an immediate growth story for us,” she said.
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Yahoo has stressed that it is sensitive to concerns that it may impact Tumblr in a negative way, and will make sure to avoid making the network less irreverent or more corporate.
“Per agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business,” Yahoo stated.