Yahoo agreed to a acquire popular blogging platform Tumblr, in an announcement on Monday (May 20), in a reported $1.1 billion cash deal.
The deal is Yahoo’s most expensive since they bought online search engine Overture a decade ago for $1.3 billion in cash and stock.
According to the Associated Press, Yahoo is paying all cash for Tumblr, which comes from a $7.6 billion sale of its stake in Chinese Internet company Alibaba Holdings Group last year. 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.
Tumblr attracts 300 million visitors per month, which Yahoo pledges to keep and “not to screw it up.” In its six-year history, users of the site haven’t had to view much advertising, so Yahoo has to manage the new acquisition carefully to place ads and not turn off the user base.
Yahoo said it will work with Tumblr to create ads that “are seamless and enhance the user experience.”