Yahoo (YHOO) confirms its deal to acquire Tumblr for $1.1B in cash. "Per the agreement and our...

Yahoo (YHOO) confirms its deal to acquire Tumblr for $1.1B in cash. "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." Yahoo expects the combination to grow its audience by 50% and grow traffic by 20%. Up earlier, Yahoo now off 1% premarket. (PR)

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Comments (4)
  • deercreekvols
    , contributor
    Comments (9848) | Send Message
    Is this a regular business agreement?


    Are you kidding me?


    What happens when Yahoo does "screw it up?" Is this agreement legally binding?
    20 May 2013, 09:28 AM Reply Like
  • DoctoRx
    , contributor
    Comments (8124) | Send Message
    It doesn't appear they disclosed the legal representations they made to Karp and Tumblr. But this is an entirely new Yahoo mgmt team and a new board. They mean to succeed and don't want to mess things up for future acquisitions.
    20 May 2013, 10:40 AM Reply Like
  • GregScotts
    , contributor
    Comments (150) | Send Message
    If you look up tumblr's About page you'll see tumblr is made up of 108 million blogs and 50.9 billion posts by its' users.


    I wonder if these are worth $1.1 billion?



    20 May 2013, 11:17 AM Reply Like
  • Whitehawk
    , contributor
    Comments (3121) | Send Message
    The dash for trash. This was an inside deal (my take). Had to be at that wild price.
    20 May 2013, 02:53 PM Reply Like
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