Yahoo Is Planning to Buy Tumblr for $1.1 Billion

Yahoo’s board has agreed to buy Tumblr, the popular blogging service, for about $1.1 billion in cash, people with knowledge of the agreement said on Sunday.The deal, sealed at a meeting of Yahoo’s board, is expected to be announced as soon as Monday, said one the people, who was not authorized to speak ahead of the announcement. Contacted Sunday, Sara Bettencourt Gorman, a Yahoo spokeswoman, declined to discuss the deal. A representative from Tumblr was not immediately available. The acquisition is the biggest yet under Yahoo’s chief executive, Marissa Mayer, as she attempts to reinvent the once-embattled Web pioneer’s fortunes. Under her, the company is seeking to make up for years of missing out on the growing use of social networks and mobile devices. Buying Tumblr is intended to help address that shortfall. The six-year-old company is one of the most popular blogging services, with over 108 million blogs. Buying the company could provide a wealth of user-generated content. The acquisition will be a test for Ms. Mayer, who will have to ensure that Tumblr does not get lost inside Yahoo. more