Dive summary:
- Reputable sources have confirmed that Yahoo is in talks with Tumblr to reach an acquisition agreement.
- Although no deal has been made yet, it is rumored Yahoo may pay $1 billion for the popular site.
- Tumblr caters to a young, cool, and creative crowd; a group Yahoo is not succesfull in reaching.
From the article:
"From Tumblr's point of view, the deal also would seem to make a lot of sense. The company has been looking to make a big exit to justify its huge valuation; the company had been rumored to be struggling to raise more funding until recently. "They are looking for a liquidity event," said one source. And Yahoo big ad sales force could help Tumblr ramp up its nascent revenue, while exposing the social networking/blogging behemoth to a wealth of new customers."
