Yahoo approves Tumblr acquisition
The iconic internet company has bolstered its business avenues with its latest purchase.
SAN FRANCISCO - Yahoo's board has approved a deal to buy blogging and social networking site Tumblr for $1.1 billion in cash, the Wall Street Journal cited people familiar with the matter as saying on Sunday.
Such an acquisition would be Marissa Mayer's largest deal since taking the helm of the once-iconic Internet company in July 2012.
Yahoo is keen on fast-growing Tumblr because its younger user base would bolster the older website's cool factor, the technology blog AllThingsD cited sources as saying.
Mayer, who spent 13 years at Google, is trying to revitalise a former Internet powerhouse that in recent years has struggled with declining business.
On its home page, Tumblr said it hosts 108 million blogs, with 50.7 billion posts between them.
The deal comes after a recent failed attempt to buy a controlling stake in French video site Daily Motion, owned by France Tlcom SA.
Tumblr, one of the more successful Internet start-ups out of New York, has only just begun earning revenue through advertising.
Yahoo invited press to an event in Manhattan on Monday at which it promised to share something special, without elaborating.
Yahoo declined to comment, while Tumblr did not respond to requests for comment.