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Yahoo Buys Tumblr for $1.1 Billion, Exodus of Users to WordPress Begins

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yahoo buys tumblr

And just like that, after being the subject of tech talks last weekend, Yahoo made it official and announced that they’ve reached an agreement with Tumblr. Yahoo buys Tumblr for $1.1 billion in cash. None other than Yahoo’s Marissa Mayer wrote via the company’s official Tumblr, announcing the acquisition deal.

In the said Tumblr post, Ms. Mayer assures Tumblr users that Yahoo will not screw things up by way of this acquisition. As such, Tumblr will continue to operate independently from Yahoo. Tumblr’s current CEO David Karp will retain his post. And everything else that Tumblr has laid down will push through as planned, includnig roadmap, team, wite and irrevereance. What Yahoo will do is simply to help Tumblr get even better and faster, according to Ms. Mayer.

To do this, the Yahoo Chief said that Tumblr can use Yahoo!’s personalization technology and search infrastructure to help users in discovering creators, bloggers and content. For its part, Tumblr is bringing along 50 billion blog post to Yahoo’s media network and search experiences. Some say, this is by way of advertising revenues which Tumblr has been trying to avoid but is inevitable nonetheless. Yahoo promises to make this advertising opps more seamless and hopefully not obtrusively annoying enough to shed away current Tumbler users.

Speaking of users, as early as now, reports are saying that a significant number of Tumblr users have started their exodus towards WordPress.com. Whether this number continues to grow more, remains to be seen.

So, for those of you who are currently maintaining an active Tumblr account, will be leaving Tumblr now that Yahoo owns it? Or will stay and just let things be? Which blogging platform will you most likely use in lieu of Tumblr? Share your thoughts via the comment below.

Here’s the full announcement by Marissa Mayer:

I’m delighted to announce that we’ve reached an agreement to acquire Tumblr!

We promise not to screw it up.  Tumblr is incredibly special and has a great thing going.  We will operate Tumblr independently.  David Karp will remain CEO.  The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve.  Yahoo! will help Tumblr get even better, faster.

Tumblr has built an amazing place to follow the world’s creators. From art to architecture, fashion to food, Tumblr hosts 105 million different blogs.  With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of thefastest-growing media networks in the world.  Tumblr sees 900 posts per second (!) and 24 billion minutes spent onsite each month.  On mobile, more than half of Tumblr’s users are using the mobile app, and those users do an average of 7 sessions per day.  Tumblr’s tremendous popularity and engagement among creators, curators and audiences of all ages brings a significant new community of users to the Yahoo! network.  The combination of Tumblr+Yahoo! could grow Yahoo!’s audience by 50% to more than a billion monthly visitors, and could grow traffic by approximately 20%.

In terms of working together, Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love.  In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences.  The two companies will also work together to create advertising opportunities that are seamless and enhance user experience.

As I’ve said before, companies are all about people.  Getting to know the Tumblr team has been really amazing.  I’ve long held the view that in all things art and design, you can feel the spirit and demeanor of those who create them.  That’s why it was no surprise to me that David Karp is one of the nicest, most empathetic people I’ve ever met.  He’s also one of the most perceptive, capable entrepreneurs I’ve worked with.  His respect for Tumblr’s community of creators is awesome, and I’m absolutely delighted to have him and his entire team join Yahoo!.

Both Tumblr and Yahoo! share a vision to make the Internet the ultimate creative canvas by focusing on users, design — and building experiences that delight and inspire the world every day.

— Marissa Mayer, CEO of Yahoo!

via [Yahoo]

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