The kids won’t like this. Tumblr just got a big ol’ corporate boost thanks to Yahoo! picking them up, but there’s already a heated debate about what changes are about to happen.
Via The Verge reports:
Yahoo has officially announced that it will acquire Tumblr in a $1.1 billion cash deal expected to close in the second half of the year, and will keep Tumblr’s David Karp on as CEO. “Per the agreement and our promise not to screw it up,” Yahoo says in its press release, “Tumblr will be independently operated as a separate business.” In one of its first acts of business, Yahoo has moved its official blog to yahoo.tumblr.com.
“Tumblr is redefining creative expression online,” Yahoo CEO Marissa Mayer said in the announcement. “On many levels, Tumblr and Yahoo couldn’t be more different, but, at the same time, they couldn’t be more complimentary. Yahoo is the internet’s original media network. Tumblr is the internet’s fastest-growing media frenzy.” In a blog post discussing the change, Mayer insisted that Yahoo won’t “screw up” Tumblr, and that it will operate independently. “The product roadmap, their team, their wit and irreverence will all remain the same,” Mayer wrote.
Tumblr CEO David Karp also expressed a “stand pat” attitude, saying that the company will largely remain the same. “We’re elated to have the support of Yahoo and their team who share our dream to make the internet the ultimate creative canvas,” Karp said. “Tumblr gets better faster with more resources to draw from.”
The announcement follows days of speculation that culminated in Yahoo’s board reportedly approving the deal on Sunday. The expensive buyout is considered a benefit for both parties, with Yahoo receiving Tumblr’s huge community of young users, and Tumblr’s investors reaping a sizable pile of cash.
After spending $1.1 billion do you think we should tell them cool can’t be bought? Shout out to 26-year-old David Karp though, that’s a whole lotta cash!