Yahoo is Acquiring Tumblr For $1.1 Billion

A possible deal has been in the rumor category for the past few days is now OFFICIAL.
Yahoo is acquiring Tumblr for $1.1 billion in cash.
A statement from Yahoo CEO Marissa Mayer as well a formal news release both offer a promise that Yahoo will “not screw up” Tumblr.
From Marissa Mayer’s Statement:

I’m delighted to announce that we’ve reached an agreement to acquire Tumblr!
We promise not to screw it up.  Tumblr is incredibly special and has a great thing going.  We will operate Tumblr independently.  David Karp will remain CEO.  The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve.  Yahoo! will help Tumblr get even better, faster.
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In terms of working together, Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love.  In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences.  The two companies will also work together to create advertising opportunities that are seamless and enhance user experience.
As I’ve said before, companies are all about people.  Getting to know the Tumblr team has been really amazing.  I’ve long held the view that in all things art and design, you can feel the spirit and demeanor of those who create them.  That’s why it was no surprise to me that David Karp is one of the nicest, most empathetic people I’ve ever met.  He’s also one of the most perceptive, capable entrepreneurs I’ve worked with.  His respect for Tumblr’s community of creators is awesome, and I’m absolutely delighted to have him and his entire team join Yahoo!.

From the News Release:

With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of the fastest-growing media networks in the world. Tumblr sees 900 posts per second (!) and 24 billion minutes spent on site each month. On mobile, more than half of Tumblr’s users are using the mobile app and do an average of 7 sessions per day. Its tremendous popularity and engagement among creators, curators and audiences of all ages brings a significant new community of users to the Yahoo! network. The combination of Tumblr+Yahoo! is expected to grow Yahoo!’s audience by 50 percent to more than a billion monthly visitors, and to grow traffic by approximately 20 percent.
The deal offers unique opportunities for both companies. Tumblr can deploy Yahoo!’s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they’ll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!’s media network and search experiences. The two companies will also work together to create advertising opportunities that are seamless and enhance the user experience.
Total consideration is approximately $1.1 billion, substantially all of which is payable in cash.

We will update this post as more material becomes available.
UPDATE 1: Here are Few Sentences From a Statement by Tumblr Founder and CEO, David Karp

Before touching on how awesome this is, let me try to allay any concerns: We’re not turning purple. Our headquarters isn’t moving. Our team isn’t changing. Our roadmap isn’t changing. And our mission – to empower creators to make their best work and get it in front of the audience they deserve – certainly isn’t changing.
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As always, everything that Tumblr is, we owe to this unbelievable community. We won’t let you down.

Update 2: Yes, Yahoo Is Going to Run More Ads on Tumblr, Says Marissa Mayer (via AllThingsD)
Update 3: Here’s an Animated GIF that Yahoo Uses in Their Statement
Note: If image does not animate, click here to view. 

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