Yahoo! says will acquire Tumblr for $1.1 bn,eyes billion visitors mark

Tumblr is redefining creative expression online,she added.

The deal to acquire Tumblr,which claims more than 300 million visitors in a month and 120,000 sign-ups every day,is expected to be completed in the second half of 2013.

“The combination of Tumblr+Yahoo! is expected to grow Yahoo!’s audience by 50 per cent to more than a billion monthly visitors and to grow traffic by approximately 20 per cent,” Yahoo! said in a statement.

Tumblr will be operated as a separate business and David Karp will remain CEO. The product,service and brand will continue to be defined and developed separately,it added.

“Total consideration is approximately USD 1.1 billion,substantially all of which is payable in cash. The transaction,which is subject to customary closing conditions,is expected to close in the second half of the year,” Yahoo! said.

Acquisition of Tumblr will help the struggling Internet major add more users to its network and also aid in expanding its advertising business.

Tumblr sees 900 posts per second and 24 billion minutes spent on site each month. On mobile,more than half of its users are using the mobile app and do an average of 7 sessions per day,it said.

Tumblr can deploy Yahoo!’s personalisation technology and search infrastructure to help its users discover creators,bloggers,and content,while,Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences,it added.

The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.

“Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing,” Tumblr CEO David Karp said.

Founded by David Karp in 2007,the New York-headquartered media network Tumblr is powered by independent creators.