This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Yahoo! Takes Tumblr in $1.1B Deal

NEW YORK ( TheStreet) - After much speculation, Yahoo! (YHOO - Get Report) has confirmed that it is buying Tumblr, a popular microblogging platform and social media Website.

According to the early morning press release the total cost of the deal is approximately $1.1 billion, substantially all of which is payable in cash.

Yahoo! is up 0.11% to $26.55 in pre-market trading.

"Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business," said Yahoo!, in its press release. "The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators."

Tumblr's offices in midtown Manhattan will remain and David Karp will continue as CEO.

For Yahoo!, considered "old media" in Web years, the deal offers a huge and much younger new audience. According to current stats, Tumblr sees 900 posts per second and 24 billion minutes spent on site each month. On mobile, more than half of Tumblr's users are using the mobile app for an average of 7 sessions per day.

In addition to the cash infusion, Tumblr will be able to take advantage of Yahoo!'s personalization technology and search infrastructure. The two companies will also work together to create advertising opportunities.

The transaction is set to close in the second half of the year.

We are likely to get more details about the deal at the big event that Yahoo! has planned for late this afternoon in midtown Manhattan.

--Written by Gary Krakow in New York.

>To submit a news tip, send an email to: tips@thestreet.com.
Gary Krakow is TheStreet's senior technology correspondent.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
YHOO $33.14 0.00%
AAPL $113.29 0.00%
FB $91.01 0.00%
GOOG $630.38 0.00%
TSLA $248.48 0.00%

Markets

Chart of I:DJI
DOW 16,643.01 -11.76 -0.07%
S&P 500 1,988.87 +1.21 0.06%
NASDAQ 4,828.3250 +15.6170 0.32%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs