Yahoo is reported to be in talks with Tumblr to acquire the popular microblogging site in an estimated $1 billion deal. Details about the deal were leaked yesterday in an article published on All Things D, a publication that in the past has prided itself on its Yahoo sources.
News of the $1 billion deal comes just a few months after Tumblr CEO David Karp shared in an interview with Forbes magazine that he was cautious about selling to a major company like Yahoo because he didn’t want Tumblr to become “absorbed into a behemoth of another company and raided for talent and traffic.”
Should the deal go through, Yahoo will be positioned as a power player in the social media world alongside Facebook, Twitter, Instagram and Pinterest. A major driving point pushing Yahoo in the deal is their desire to appeal to the 18-24-year old demographic that make up the majority of Tumblr’s audience. If successful in their acquisition bid, Yahoo would have access to Tumblr’s 107 million users, who currently generate up to 15 billion pageviews a month for the microblogging platform.
Tumblr has continued to grow in popularity as many social media users have shifted their focus from Facebook and Twitter to Tumblr and Instagram. 2013 has been a big year for Tumblr so far as the platform added prominent users like the White House, Beyonce and Alicia Keys, introduced ads on mobile, and developed an instant message feature for users’ dashboards.
Check Out Tumblr’s Major 2013 Moments: