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Yahoo! buys Tumblr for $1.1bn

May 20, 2013

Yahoo! has reportedly decided to buy popular blogging website Tumblr. The move comes as CEO Marissa Mayer tries to breathe new life into the company.

https://p.dw.com/p/18alx
ARCHIV: Das Yahoo-Logo vor dem Sitz des Unternehmens in Santa Clara (USA) (Foto vom 20.05.12). Yahoo-Chefin Mayer hat ihrem frueheren Arbeitgeber Google einen seiner Topmanager abgeworben. Werbestratege Henrique de Castro soll Google verlassen, um Anfang kommenden Jahres sein Knowhow als Leiter des operativen Geschaefts bei Yahoo einzubringen. Das teilte Yahoo mit Hauptsitz im kalifornischen Sunnyvale am Dienstag (16.10.12) ueberraschend mit. Der 47-jaehrige de Castro hatte 2006 den Computerhersteller Dell verlassen und beim Suchmaschinenanbieter Google angeheuert, wo er unter anderem die Expansion von Google-Werbung auf mobile Geraete wie etwa Smartphones leitete. Der Topmanager erhaelt von Yahoo ein Verguetungspaket im Wert von rund 58 Millionen Dollar (rund 45 Millionen Euro). Sein Jahresgehalt liegt bei 600.000 Dollar (etwa 460.000 Euro). (zu dapd-Text) Foto: Paul Sakuma/AP/dapd
Image: dapd

Following rumors circulating through the media, Yahoo Inc. confirmed on Monday it would buy popular blogging site Tumblr for $1.1 billion (857 million euros).

Tumblr will reportedly continue to operate independently, according to the press release.

The Wall Street Journal and the website AllThingsD both published articles detailing the planned merger in advance of the formal announcement.

In the run-up to Monday's press release, Yahoo had declined media requests to confirm the reports. However, the company had already sent out invitations for a Monday press conference, pleding that CEO Marissa Mayer would unveil "something special" there.

Since becoming CEO at Yahoo!, Mayer, 37, has sought to make the Internet giant more competitive in a market reshaped by social media, smart phones and tablets. Buying Tumblr was believed to be part of a strategy to attract a younger demographic.

New York-based Tumblr Inc has grown quickly since it was founded by David Karp in 2007. Today, it hosts a platform for some 108 million Internet users worldwide where they can personalize blog entries with photos, links, audio and video clips.

The blogging site took in $13 million in revenue in 2012.

kms/msh (AP, AFP, dpa)