Yahoo! Acquires Tumblr for $1.1B Ahead of the Ticker

NEW YORK ( TheStreet) -- Yahoo! ( YHOO) is acquiring blogging service Tumblr for about $1.1 billion in cash in an effort to increase its audience.

The deal will use about a fifth of Yahoo's $5.4 billion in cash and marketable securities.

Tumblr, a widely used blogging service with over 100 million users, is especially popular with teens and young adults. Yahoo! said the acquisition should increase its audience by 50% to more than a billion monthly visitors.

In a statement, Yahoo! said, "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business." Tumblr founder David Karp, who started the company in 2007, will remain its CEO.

Yahoo!'s board approved the deal on Sunday.


Boeing's ( BA) 787 Dreamliner is hitting the skies once again.

After stopping deliveries of the jet in mid-January after the fleet was grounded due to battery problems, Boeing said it is resuming delivery of them Monday. Regulators have officially given the Dreamliner approval to fly again after Boeing redesigned the battery system on the fleet.

Lithium-ion batteries overheated on two Dreamliners in January, causing fire and prompting one jet to make an emergency landing. Authorities grounded the entire fleet for what ended up totaling 123 days. The Federal Aviation Administration lifted its flying ban in April, instructing airlines they could take to the skies with the Dreamliner once again as soon as the battery systems were fixed.

The first U.S. 787 flight since the grounding will be a route between Houston and Chicago on United Continental ( UAL).


Campbell Soup ( WMT) reported higher-than-expected quarterly earnings on Monday on improved sales.

The world's largest soup-maker reported net income that rose to $181 million, or 57 cents a share, in the fiscal third quarter, up from $177 million, or 55 cents a share, a year earlier. Excluding items, Campbell earned a profit of 62 cents a share, beating analysts' estimates of 56 cents, according to Thomson Reuters.

The company's acquisition of Bolthouse Farms helped to boost net sales, which climbed by 15% to $2.09 billion, beating Wall Street expectations of $2.05 billion.

Looking ahead, the company boosted its full-year earnings outlook to earnings of $2.58 to $2.62 a share, up from its prior outlook of $2.51 to $2.57.


The chatter on Main Street (a.k.a. Google, Yahoo! and other search sites) is always of interest to investors on Wall Street. Thus, each day, TheStreet compiles the stories that are trending on the Web, and highlights the news that could make stocks move.

-- Written by Brittany Umar.

Brittany joined TheStreet.com TV in November 2006 after completing a degree in Journalism and Media Studies at Rutgers College. Previously, Brittany interned at the local ABC affiliate in New York City WABC-TV 7 where she helped research and produce On Your Side, a popular consumer advocacy segment.

More from Stocks

Coke's a Better Stock to Buy Than Pepsi on Surprising North America Sales
Amazon Crushes Quarterly Earnings Estimates, Raises the Price of Prime

Amazon Crushes Quarterly Earnings Estimates, Raises the Price of Prime

Barbie Flexes Her Muscle in Mattel's Q1 Earnings

Barbie Flexes Her Muscle in Mattel's Q1 Earnings

Amazon Crushes First-Quarter Profit Estimates -- Watch TheStreet's Live Analysis

Amazon Crushes First-Quarter Profit Estimates -- Watch TheStreet's Live Analysis

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb

Dow Jumps 238 Points as S&P 500, Nasdaq Also Climb