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For the past couple of days there have been reports of a potential Tumblr acquisition by Yahoo. Citing sources with close knowledge of the deal, AllThingsD is now reporting that Yahoo’s board of directors has approved a $1.1 billion acquisition of the blogging platform. Also Read - WordPress owner Automattic buys Tumblr from Verizon
The deal is believed to be an all-cash acquisition and as part of the agreement, Tumblr CEO David Karp will stay at Yahoo for the next four years at least, and will maintain control of its operations. Both the companies are expected to release an official statement tomorrow.
As we have said before, Yahoo CEO Marissa Mayer sees this deal as the stake in the ground for what her strategy going forward for Yahoo. Since taking over as the CEO back in July 2012, she has been working towards changing the perception youngsters have of Yahoo, and Tumblr, which is viewed as an incredibly cool and hip platform, is going to be used to infuse some cool in to the entire Yahoo identity.