Yahoo! has reportedly decided to buy popular blogging website Tumblr. The move comes as CEO Marissa Mayer tries to breathe new life into the company.
Following rumors circulating through the media, Yahoo Inc. confirmed on Monday it would buy popular blogging site Tumblr for $1.1 billion (857 million euros).
Tumblr will reportedly continue to operate independently, according to the press release.
The Wall Street Journal and the website AllThingsD both published articles detailing the planned merger in advance of the formal announcement.
In the run-up to Monday's press release, Yahoo had declined media requests to confirm the reports. However, the company had already sent out invitations for a Monday press conference, pleding that CEO Marissa Mayer would unveil "something special" there.
Since becoming CEO at Yahoo!, Mayer, 37, has sought to make the Internet giant more competitive in a market reshaped by social media, smart phones and tablets. Buying Tumblr was believed to be part of a strategy to attract a younger demographic.
New York-based Tumblr Inc has grown quickly since it was founded by David Karp in 2007. Today, it hosts a platform for some 108 million Internet users worldwide where they can personalize blog entries with photos, links, audio and video clips.
The blogging site took in $13 million in revenue in 2012.
kms/msh (AP, AFP, dpa)