Yahoo Acquires Tumblr for $1.1 Billion

As many expected, Yahoo today announced that it acquired the social media service Tumblr for $1.1 Billion in a cash deal this morning. Yahoo has promised not to ‘screw [Tumblr] up,’ and to let it run as an independently operated business. Yahoo’s first move, however, has been to move its official blog to Yahoo estimates that the deal will expand its audience by 50% and its overall traffic by 20%. The company plans to wire its personalization and search into Tumblr’s massive collection of blogs, and the companies will work in tandem on “seamless advertising oportunities.”