A match made in cyberspace? Yahoo! set to buy Tumblr for $1.1bn
Not quite a year after arriving at Yahoo! from Google, chief executive Marissa Mayer has apparently persuaded her board to approve the purchase of Tumblr – the go-to website for legions of young bloggers and internet sharers – for $1.1bn in cash, despite it making just $13m in sales last year.
The move, which will give Yahoo! a greater presence in social networking, will also make one more very young Silicon Valley tycoon out of David Karp. Now 26, Mr Karp launched Tumblr from his mother’s New York apartment in 2007. He had hitherto resisted approaches by potential buyers.
Details of the deal, The Wall Street Journal reported last night, will be unveiled by Yahoo! today. It is likely that Tumblr, which has about 100 million users and provides a platform for roughly 90 million posts every day, will continue to operate as a separate entity, presumably with Mr Karp at the tiller for the foreseeable future.
The purchase, if confirmed, represents a gamble for both sides. Ms Mayer, poached from Google last July, is betting that Tumblr has a long way to go, in accumulating followers and finding ways to generate income. Mr Karp, meanwhile, has presumably calculated he can’t take Tumblr much further without the juice from an internet giant such as Yahoo!.
Ms Mayer has stirred occasional controversy at her new place of work, banning her employees from working from home and curtailing her own maternity leave and bringing her infant to her office. She has long indicated that she means to grow Yahoo! in part through a strategy of acquisitions, of which Tumblr would be the biggest and boldest so far.
Though he is now promised outsized personal wealth, Mr Karp is not yet quite in the Mark Zuckerberg league. Exactly how much he will make is not known because he has investors with undisclosed stakes who will share the Yahoo! proceeds with him. He is known to have sold 25 per cent in 2008.
Yahoo has 700 million customers worldwide and employs 11,500 people in 26 countries, including the UK where it has an office in London. Its services include a search engine and an email client called Yahoo! Mail.
Diving in at the deep end is no excuse for shirking the style stakes
- 2 PornHub begs users to stop uploading video clips of Brazil getting beaten 7-1
- 3 Why I'm on the brink of burning my Israeli passport
- 4 L'Oreal cuts ties with Belgium supporter Axelle Despiegelaere after hunting trip photographs
- 5 The true Gaza back-story that the Israelis aren’t telling this week
Game of Thrones author George RR Martin says 'f*** you' to fans who fear he will die before finishing Westeros saga
Loom bands: Bids for dress made from colourful rubber pass £170,000 on eBay
Supermoon 2014: When and why will the moon look bigger and brighter this summer?
Gaza-Israel conflict: The terrible price Palestinian children are paying for Israel’s war with Hamas
Rotten egg smell could help battle heart disease and Alzheimer's
Sustained immigration has not harmed Britons' employment, say government advisers
War is war: Why I stand with Israel
7/7 memorial defaced on anniversary of 2005 attacks with ‘Blair lied thousands died’ graffiti
Australia facing international condemnation after turning around Sri Lankans at sea
Even when it brutalises one of its own teenage citizens, America is helpless against Israel
Socialist Worker called to apologise over ‘vile’ article saying Eton schoolboy Horatio Chapple's death is ‘reason to save the polar bears’
£30000 - £45000 per annum + Benefits + Bonus: Harrington Starr: C# Developer (...
£60000 - £80000 per annum + Benefits + Bonus: Harrington Starr: C# Integration...
£75000 - £85000 per annum + ex bens: Deerfoot IT Resources Limited: Biztalk Te...
£60000 per annum: Harrington Starr: Trade Desk Specialist (FIX, Linux, Windows...