Yahoo Tumblrs for Cool: Board Approves $1.1 Billion Deal as Expected

The Yahoo board has approved a massive $1.1 billion all-cash deal to buy Tumblr. It’s not clear when the official vote was taken, but sources close to the board said the acquisition was a foregone conclusion and was unanimously approved by the directors of Silicon Valley Internet giant. The deal will likely be announced Monday morning, said numerous sources. initially broke the story of the acquisition efforts and later followed up with details of the exact price and the board meeting to approve the transaction. There were no other competing bids, despite reports, to snap up the New York-based social blogging service. That said, Tumblr had held some very preliminary discussions about various deals with Facebook, Google, Microsoft and also Twitter earlier this year. As part of the Yahoo deal, Tumblr CEO David Karp — who will get a windfall of cash from the acquisition — will stay at Yahoo for four years at least and retain a lot of control over the service, … [Read more...]