Yahoo’s board of directors is meeting this weekend to consider buying Tumblr for $1.1 billion in cash, AllThingsD reported Friday.
Such an acquisition would be CEO Marissa Mayer’s largest deal since taking the helm of the once-iconic Internet company in July 2012. Yahoo is keen on Tumblr because its younger user base would enhance the older website’s “cool factor,” the technology blog cited the sources as saying.
The news could be announced as soon as Monday, it said. Yahoo has invited press to an event in Manhattan at which it promised to “share something special,” without elaborating.
Mayer, who spent 13 years at Google Inc, is trying to revitalize a former Internet powerhouse that in recent years has struggled with declining business. On its home page, Tumblr says it hosts 108 million blogs, with 50.7 billion posts between them.
Yahoo declined to comment, while Tumblr did not respond to requests for comment.
Update: TechCrunch is now reporting that Tumblr feels the $1.1 billion bid may actually be too low, and that the company considers it “only a first offer.” According to TechCrunch‘s sources, if the offer doesn’t meet Tumblr’s standards it would provide the company the opportunity to shop itself around to other interested parties — including Facebook and Microsoft.