NEW YORK: Internet firm Yahoo! has said it will acquire blogging site Tumblr for USD 1.1 billion in an all cash deal, a move which is expected to help it regain its glory and help increase the number of visitors to more than a billion in a month.
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.-PTI
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