Yahoo is looking to build its name its brand in the social media market and they are trying to do so with a major strategic purchase. How much are they willing to pay for Tumblr? Find out below.
It was reported on Sunday by the that Yahoo has agreed to buy popular blogging service Tumblr for about $1.1 billion in cash.
The purchase is grabbing multiple headlines because of the purchase price. If this deal goes through it would surpass Facebook’s purchase of Instagram last year for $1 billion. The price isn’t the only exciting factor about this deal, the rebranding of Yahoo is a strong strategic move of Yahoo CEO Marissa Mayer. The acquisition was discussed by journalists Michael J. de la Merced, Nick Bilton and Nicole Perlroth of The New York Times: “For Yahoo and its chief executive, Marissa Mayer, buying Tumblr would be a bold move as she tries to breathe new life into the company. The deal, the seventh since Ms. Mayer left Google last summer to take over Yahoo, would be her biggest yet. It is intended to give her company more appeal to young people, and to make up for years of missing out on the revolutions in social networking and mobile devices. Tumblr has over 108 million blogs, with many highly active users.”
There is one thing which sets Tumblr aside from most major social networks, it isn’t monetized. The Yahoo acquistion will defiantly bring some changes to the blogging service but we will have to wait for the finalized deal to see what changes will come to Tumblr.