Yahoo Makes $1.1 Billion Purchase

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Yahoo announced earlier today that they have purchased for $1.1 billion. The agreement, which had rumors floating around since last Thursday, will help Yahoo relate to the younger, active online user base that Tumblr provides.

However, the deal does raise some concerns from the Tumblr faithful. These people are worried that Yahoo will flood the blog site with ads, since that is primarily what makes Yahoo their money. Up until now, Tumblr founder David Karp has resisted the use of traditional advertising on Tumblr. However Yahoo has promised not to “mess up” Tumblr.

 

Yahoo has stated that Tumblr will continue to be independently operated as a separate business with Karp staying on as the CEO.

Yahoo CEO (Mayer) compared the deal to some of the most successful tech acquisitions in the past like Google’s purchase of YouTube and the purchase of PayPal by eBay (EBAY,Fortune 500), combinations that she said were virtually invisible to users of the Web sites that were being acquired.

 

We will see what new changes come with this purchase. Until then, share your thoughts! 

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