The rumors were true after all. Yahoo’s board has approved a deal to buy blogging service Tumblr for a cool $1.1 billion in cash, according to the Wall Street Journal. The deal that would see Tumblr continue to operate as an independent business could be officially announced as early as Monday. Rumors that Yahoo was circling Tumblr were first reported by All Things D that said the purchase would be a way for the company to become “cool again” and attract the coveted 18-to-24-year-old demographic. Ad Week also reported on the rumors saying the acquisition could be what CEO Marissa Mayer has been looking for “to turn around Yahoo’s momentum.” The move could also help Yahoo make more advertising revenue.
Ever since taking over Yahoo, Mayer has said acquisitions would be a key part of her strategy for the company but so far the deals have mostly involved smaller startups. “If you could pick a company that fits in with what Marissa Mayer has demonstrated in her career — aesthetics software technology and fast-growing — you could not land on a better choice,” a source told All Things D on Thursday. On Friday, Yahoo announced it would hold a press event on Monday in New York, where Tumblr just happens to be based, points out USA Today.