Tumblr Sold To Yahoo For $ 1.1 Billion

Done deal: Yahoo acquires Tumblr for “approximately $1.1 billion”, promises “not to screw it up”

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It’s done, ladies and gentlemen.

As expected, Yahoo this morning announced its acquisition of blogging phenomenon Tumblr. The Internet giant has bought the six-year old New York company for “approximately $1.1 billion”, substantially all of which will be paid in cash.

The news is in line with earlier reports from AllThingsD, which first broke the news of sale talks between both parties, as well as the New York Times and the Wall Street Journal.

Amusingly, the press release says:

“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business.”

Founder David Karp will remain at the helm as Tumblr’s CEO.

He’ll also be worth a heck of a lot more.

Yahoo CEO Marissa Mayer even took to Tumblr to repeat the promise of ‘not screwing up’ the marriage. Time will tell; as for the deal, it is expected to close in the second half of this year.

As for Karp’s blog post on the matter, you can find it here. Don’t read it if you’re uncomfortable with the F-word. That would be ‘fuck’ by the way.

Meanwhile, Yahoo moved its corporate blog over to Tumblr. A great sign.

That’s the gist of the news, folks, although here are some interesting stats and figures from the press release while you make up your mind whether this is a brilliant or idiotic move, or somewhere in between.

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.

-source The Next Web

Yahoo Acquires Tumblr, Promises ‘Not to Screw It Up’

Yahoo-campus

The speculation is over. Yahoo has acquired Tumblr, according to official statements from Yahoo CEO Marissa Mayer and Tumblr CEO and Founder David Karp.

In a somewhat odd press release, Yahoo promises it will not “screw up” the popular microblogging service.

“Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO. The product, service and brand will continue to be defined and developed separately with the same Tumblr irreverence, wit, and commitment to empower creators,” says Yahoo in the release.

The total price Yahoo paid for Tumblr is approximately $1.1 billion, all of it in cash.

Yahoo claims the deal offers “unique opportunities” for both companies. Yahoo plans to deploy its personalization technology and search infrastructure to Tumblr, which should help users find relevant content more easily. On the other hand, Tumblr brings 50 billion blog posts, 300 million monthly unique visitors and 120,000 daily signups.

Tumblr CEO David Karp has also confirmed the acquisition in a blog post.

“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,” wrote Karp.

The reactions we’re seeing from Tumblr users are mostly those of disappointment, though some of them are positive.

“So, I just finished watching The Goonies with my mom so I went up stairs to take a little nap. I walked past my dad, who was listening to the news on the radio, and the second I did that I heard the news about Yahoo! buying Tumblr had been confirmed after hearing these news I put my hands up and yelled “NOOOOOOOOO” and got down on my knees ‘sobbing’,” writes one Tumblr user.

Another user is expressing his disappointment in typical Tumblr fashion: through animated GIFs.

What do you think? Is Yahoo’s acquisition of Tumblr a good move? Which company will benefit more from the deal? Share your thoughts in the comments.

from: mashable

Yahoo board approves $1.1B all-cash acquisition of Tumblr

Yahoo board approves $1.1B all-cash acquisition of Tumblr

SAN MATEO, Calif. — The maker movement has helped start many companies. This year, the Maker Faire is giving them a place of their own, with a “Startup Pavilion” that highlights 20 new maker-centric companies.

It’s part of a growing recognition that the do-it-yourself spirit is not just a fun hobby, it’s a rich source of economic potential.

“There is a kind of maturation happening to the maker movement,” said Maker Faire organizer Dale Dougherty, when I spoke to him last week. It’s still dominated by hobbyists, but now there are an increasing number of startups, entrepreneurs, small companies, and even big corporations looking to get involved with the DIY spirit.

“At the very first Maker Faire, they really were all amateurs,” Dougherty said, of the exhibitors. After a few years, the Faire started hosting vendors — primarily makers of parts and components, like Arduino boards, used by makers. Now, the Faire is highlighting maker-inspired startups. Here’s a selection of the 20-odd startups at Maker Faire:

  • SeeedStudio, an “open hardware company develops and brings to market innovative and cost-effective prototyping solutions for hobbyists and aspiring inventors.”
  • RedBearLab, which makes a wearable BlueTooth 4.0 board you can use to interface with an iPhone or Android device.
  • Formlabs, makers of a high-resolution 3D printer aimed at engineers and design professionals.
  • Deezmaker, another 3D printer vendor, this one aimed at making an affordable printer called the Bukobot.
  • BioLite, a company that aims to reduce third-world pollution with a small wood-fueled stove that converts heat from the fire into usable electricity, improving combustion while allowing users to charge small devices.
  • BlinkM, makers of multicolored, programmable LED lights for use in your electronics projects.
  • Smitten, a maker of handmade “artisan truffles.”

Big companies are getting into the act, too. Autodesk, for instance, has a fruitful partnership with 3D printing pioneer Makerbot. Autodesk makes an easy-to-use set of 3D design tools called 1-2-3D, and the 3D files created by those web-based tools can easily be printed on a Makerbot. This year, Autodesk’s large booth at Maker Faire includes a 3D scanning station, where you can get your head scanned and turned into a 3D digital file suitable for printing.

General Electric is also a sponsor of Maker Faire, and has been working with O’Reilly Media (the parent company of the Faire) on the Faire as well as the two-day Hardware Innovation Workshop that preceded it earlier this week.

“It’s a long, slow process of a company trying to understand the maker movement and engage with it,” Dougherty said. GE wants to encourage its own engineers to think more entrepreneurially, but it also sees the value of DIY, maker-type activities for encouraging and education the next generation of engineers.

Even Motorola, the phone manufacturer now owned by Google, is starting to embrace the maker spirit, Dougherty said, by making phones that are easier than most phones to hack, modify, extend, and repair.

“What would the maker community want to do with a cellphone as a platform, not just a fixed device?” he said.

from : venturebeat

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.

Tumblr has built an amazing place to follow the world’s creators. From art to architecture, fashion to food, Tumblr hosts 105 million different blogs.  With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of thefastest-growing media networks in the world.  Tumblr sees 900 posts per second (!) and 24 billion minutes spent onsite each month.  On mobile, more than half of Tumblr’s users are using the mobile app, and those users do an average of 7 sessions per day.  Tumblr’s 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! could grow Yahoo!’s audience by 50% to more than a billion monthly visitors, and could grow traffic by approximately 20%.

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!.

Both Tumblr and Yahoo! share a vision to make the Internet the ultimate creative canvas by focusing on users, design — and building experiences that delight and inspire the world every day.

http://yahoo.tumblr.com/

 

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