Monday, 20 May 2013

Report: Yahoo agrees to buy Tumblr for $1.1 billion cash

Yahoo

13 hours ago

This image released by NBC shows Yahoo CEO Marissa Mayer appearing on NBC News' "Today" show, Wednesday, Feb. 20, 2013 in New York to introduce the we...

AP

Yahoo's board has agreed to buy Tumblr for $1.1 billion cash. Yahoo CEO Marissa Mayer has acquired several social media sites, presumably to attract a younger audience.

The Yahoo board has approved a deal to pay $1.1 billion for the blogging site Tumblr, according to The Wall Street Journal's All Things D.

Yahoo will pay for the blogging site in cash, All Things D reported. Yahoo nor Tumblr released official statements.

Tumblr's media team did not respond to repeated requests for comment. In a statement to NBC News, a Yahoo spokeswoman said Yahoo would not comment on "rumors or speculation."

Yahoo no doubt has something up its sleeve, as the company invited CNBC to a press event on Monday afternoon where it would "share something special." It is unclear whether that is related to a deal with Tumblr.

Also unclear is whether Tumblr has accepted Yahoo's reported offer.

Talk of a deal began circulating Friday, after All Things D reported that the two companies had been in talks for several weeks.

(Read More:Yahoo Eyeing Tumblr for $1 Billion?)

Since Marissa Mayer became CEO at Yahoo, the company has acquired several companies that appeal to younger audiences, including Summly, Astrid and Jybe. Yahoo has also been rumored to be eyeing Hulu.

Observers say Mayer is making these deals to attract a younger audience.

(Read More: Yahoo Wonder Kid Eyes More Start-Ups After Summly Sale )

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