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Yesterday, we reported that Yahoo was considering acquiring Tumblr, the social blogging website for $1 billion. Now, AllThingsD is reporting that, the Yahoo board is going to meet on Sunday to decide on an all cash deal to acquire Tumblr for $1 billion. Also Read - Yahoo to pay USD 117.5M in latest settlement of massive breach
According to ATD sources, Marissa Mayer has decided that buying Tumblr going to be “the stake in the ground for what her strategy going forward for Yahoo.”
She clearly, wants youngsters to view Yahoo as a cool company, something that has clearly gone out of fashion. Tumblr is viewed as an incredibly cool and hip platform, and perhaps it’s going to be used to infuse some cool in to the entire Yahoo identity.
Obviously, like all big acquisitions, this deal can fall apart at the last moment, but if it comes through it should be announced on Monday. Yahoo already has scheduled a press conference on Monday.
Reportedly, Marissa Mayer started her focus on Tumblr about six weeks ago and quickly decided that Yahoo as a content company needed a property that was getting loaded with tremendous amounts of user generated content.
With Mayer’s focus on mobile, it’s also important to note that Tumblr’s mobile usage is very strong. Mayer has been on a spree of acquiring mobile first start-up’s ever since she joined Yahoo, and this will be her biggest acquisition yet.
It is being reported if the deal works out, Tumblr, CEO, and founder David Karp will be continue to operate it and will be given a level of autonomy with him only needing to integrate with Yahoo. He is reportedly being promised a four year deal that will reward him for the performance of the business.