Yahoo is getting closer to signing one of its most important deals in the past years. The Internet company could soon acquire Tumblr, an online company that was set up 6 years ago and which managed to raise more than 100 million users, but very little revenue, CNET News reports.
A close source to the matter revealed on Monday that Yahoo has agreed to pay $1.1 billion in order to purchase Tumblr, a company that is not very productive in point of profit, but has, nevertheless, managed to gather 100 million users since it was first founded six years ago. Tumblr has captured the attention of the Internet giant, Yahoo, due to the large community users that access it every day. The veteran has, therefore, decided to purchase the weblog in order to expand their services and to keep up with the evolving online habits of Internet users.
The decision to buy Tumblr has been approved by Yahoo’s board at the end of the week, so the companies could be announcing the deal in the following week. Tumblr, the other company involved in the deal, has also agreed to become part of Yahoo, even though the news has not yet been confirmed by the spokespersons of the two companies.
Although Yahoo has been struggling lately to keep afloat, the company has nevertheless managed to become a member of the group of companies who have made proficuous deals. Google and Facebook represent the best examples of companies that have spent more than $1 billion apiece to buy startup companies. Yahoo’s Chief Executive, Marissa Mayer told the press that the deal could cover many of the holes that they have in comparison with other Internet companies. By welcoming the weblog Tumblr aboard, Yahoo could finally be able to offer its users the social networking and communications services they have been lacking. The move could also expand the users’ profile to younger generations and, it could, hopefully, guarantee an access to the smartphone market, Mayer concluded.