Yahoo board reportedly approves tumble into Tumblr
19th May 2013 | 20:38
Monday could be bereft of surprises
The ink is all but dry on a $1.1 billion (about UK£715 million, AU$1.103 billion) Yahoo buy of blogging platform Tumblr.
According to sources speaking with the Wall Street Journal, Yahoo's board approved the purchase via phone Friday.
Yahoo is widely expected to make the deal public during an event Monday in New York City, an announcement that was reportedly contingent on the board's decision.
Now that it looks as though the suits have given the deal the A-OK, we should hear more starting at 2 p.m. PT/5 p.m. ET/10 p.m. BST tomorrow.
Tumblr will operate largely as an independent business, sources say, though it's unclear where the site's own board sits on the all-cash acquisition. According to a report by AllThingsD, Tumblr CEO David Karp will stay at Yahoo for at least 4 years.
Word of the Yahoo's interest in Tumblr first spread late last week, and Yahoo hastily sent out press invites for Monday's event on Friday. The company will also use Monday's event to unveil an update to Flickr, the Journal noted.
While the pick-up of Tumblr would be a coup for Yahoo in terms of gaining an entryway to new audiences (not to mention a needed injection of "cool"), Yahoo also reportedly believes it can help the platform bring in more revenue via ads, all the while boosting its own income stream.
comScore numbers placed Tumblr's unique global users for March at 117 million. Unique visitors coming from smartphones are pegged at almost 12 million.
Yahoo CEO Marissa Mayer, who will reportedly speak during tomorrow's event, sees the purchase as "the stake in the ground of what her strategy is going forward for Yahoo," ATD sources said.
TechRadar will be in New York covering tomorrow's event live, so check back in to see just what Yahoo plans to do with its billion-plus-dollar purchase.