UPDATED: Yahoo! to Buy Tumblr for $1.1 Billion? Confirmed!


The Wall Street Journal on Sunday reported that Yahoo's board has approved a deal to buy Tumblr, one of the most popular blogging platforms in the webspere. The deal according to Wall Street Journal's sources, would cost around $1.1 billion and the payment is going to be pure cash.


Although neither Yahoo nor Tumblr has commented on the report, Yahoo CEO Marissa Mayer scheduled a conference to be held this Monday in New York saying they have "something special" to announce. This seems to be another move by the once-reigning website Yahoo to regain its dominance on the internet race since losing its popularity to Google and Facebook in terms of revenue and user base.

If this rumor is confirmed, then this will be a big payday for its founder David Karp who launched Tumlr in 2007. Currently, as per Tumblr's Wikipedia page, it hosts more than 100 million blogs as of May 2013 and has generated a total of 50 billion blog posts since its appearance online.

I don't use Tumblr for my blogs since for some reason I could not find a way to put Adsense on it. I prefer using Google's Blogger for this type of online hobby where I can still put Adsense in my blog regardless if I am using a .blogspot.com or .com web address and I think that is one of the best features a blogging platform can offer to their users. Wether we think it or not, the main reason for Yahoo's purchase of Tumblr is of course to generate more revenue from its popularity by placing ads on each of the blogs Tumblr hosts and most likely, publishers on Tumblr would not get share on this earnings which I think is not so good news to hear. If I have a Tumblr blog site that has a very good number of readership and posts are originally created by myself, then to me it is reasonable to have Yahoo ask me first if it's okay to post ads on my site or atleast give me an option to  not have ads on my site or maybe give us a way where both the company and the blogger to share profit which is the same case for Blogger.com  users(provided that users are Adsense approved). I still hope that it will remain the same even after the purchase. Well, since it is not confirmed yet, let's take this report with a pinch of salt.

Tumblr just like Twitter, is categorized as a micro-blogging and a social networking platform where a blogger can create posts and make it public or private. Users have the capability of following a certain blog and/or reblog someone's posts. Posts vary from mostly photos, multimedia contents to short posts such as quotes.

UPDATED:


Today in New York city where Yahoo! CEO Marissa Mayer chosed to hold an annoucement about their new "cool" aquisition. Mayer confirmed the report above that they (Yahoo and Tumblr) have reached an agreement to buy the blogging site Tumblr and also promised "not to screw it up". For how much? A wopping $1.1 billion!


"I’m delighted to announce that we’ve reached an agreement to acquire Tumblr! We promise not to
screw it up. Tumblr is incredibly special and has a great thing going. We will operate Tumblr independently. David Karp will remain CEO. The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve. Yahoo! will help Tumblr get even better, faster." Mayer said as she announced the purchase. 

David Karp, the Tumblr CEO has also made the announcement himself through their Tumblr's page and said "We’re not turning purple. Our headquarters isn’t moving. 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."

So I guess that's their response to a host of unhappy Tumblers upon knowing the deal. Let's admit it, yes most internet users do not like advertisements blocking their sight, but that's how a service provider earns money to continue operations and provide a better experience to its users. There are just some online companies that do not know how to properly handle displaying of ads on each web pages and there are some who care enough about how their users think and feel and try to meet at least halfway.

How about you? What do you think about this aquisition? Let us know through the comments section below. : )


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