Posted by: youngragingbull | May 20, 2013

Yahoo Board agrees to buy Tumblr for $1.1B

Yahoo’s Board of Directors agreed on Sunday to purchase web-giant Tumblr for $1.1 billion in an all cash deal, which marks Yahoo’s first major acquisition under new CEO Marissa Mayer.

Yahoo said the deal will be financed by its cash reserves, which ballooned last year after the sale of about half its stake in Chinese internet company Alibaba Holdings Group for $7.6 billion.

Taking over Tumblr will devour about one-fifth of the $5.4 billion in cash that Yahoo had in its accounts at the end of March 2013.

Mayer said the acquisition is part of an aggressive growth strategy for Yahoo and will expand the company’s social media interests in an effort to challenge internet rivals Google and newcomer Facebook for audiences and users.

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