Rumours have been flying around for days about Yahoo buying Tumblr, but now it's official. The deal was accepted by Yahoo's board yesterday, but today they finally announced the acquisition via a press release.
Yahoo is buying Tumblr for $1.1 billion - most notably, all of it in cash.
Unlike other acquisitions Yahoo has recently made, they are not shutting Tumblr down - they'd be stupid if they did. Marissa Mayer, CEO of Yahoo, has promised to leave Tumblr alone, the press release itself says they will "not screw it up".
Tumblr will still operate as an independent service. As David Karp, CEO of Tumblr, said via his blog their headquarters isn't moving, their team isn't changing and their roadmap is staying the same.
David has stated that all that will be changed is the speed and reliability of Tumblr. If you've used Tumblr before, you'll know of the trouble it sometimes has when it comes to reliability and up-time. Yahoo is one of the experienced companies at handling large amounts of traffic, hopefully they'll help Tumblr be a more reliable service.
It's a good move by David Karp who at 25 years of age will be one of the richest entrepreneurs in the world. He may not be a billionaire like Zuckerberg but he'll have hundreds of millions to play around with.