Not long ago, the Wall Street Journal revealed that Yahoo!’s board of directors had confirmed the purchase of the microblogging platform Tumblr, although the move has yet to be approved by both parties. The popular service, created by David Karp in 2007, already has 100 million users, and its traffic has doubled in just a year. The move is viewed as a future investment in light of Tumblr’s increasing (although still scanty) earnings.
Yahoo!’s board of directors has confirmed its interest in the purchase, and sources close to Tumblr’s administration say that the official announcement could come as soon as this week. Marissa Meyer, Yahoo! CEO, said that the acquisition could help fill one of the gaps where her company hasn’t been very effective in recent years: social networks.
Tumblr’s earnings currently don’t surpass $5 million annually, which are principally derived from website customization using personalized templates. It has 175 employees, and 117 million registered users across the globe, providing services to 108 million blogs. In 2011, its traffic surpassed websites the likes of Wikipedia and WordPress.com.
Following the entering of Tumblr’s latest venture capital investment in 2011, the company was valued at $800 million. In fact, the move to buy the company was criticized for being too low in light of its growth in recent months. Even still, both parties are totally interested, and the specifics of the acquisition will officially be given soon.