(SAN FRANCISCO) — On Sunday, Yahoo’s board of directors approved the purchase of the social networking and blog site Tumblr for $1.1 billion, according to The Wall Street Journal.
Speculation that Yahoo would purchase Tumblr has been building for a while now, after Adweek reported that unnamed sources were expecting a deal. On Friday, Yahoo announced a press event on Monday in New York, Tumblr’s home town.
Under CEO Marissa Mayer’s leadership, Yahoo has purchased several startups as part of the company’s efforts to reach a younger, more mobile audience. Tumblr, which is very popular with teens and young adults, is the largest and highest-profile purchase so far.
Tumblr’s founder and Chief Executive David Karp has said in the past that he does not care if Tumblr makes money, and last year the site generated $13 million in revenue – far short of the $1.1 billion Yahoo is reported to be paying for it.
Tumblr does have an expansive and growing user base, with 117 million unique users world-wide as of March of this year.
There has been no official word that Tumblr’s board has also approved the deal, The Wall Street Journal notes.
Yahoo stock dipped 0.23 percent, to $26.52, in trading Friday when the press event was announced.
Copyright 2013 ABC News Radio
John Newsome and Anne Woolsey, CNN