Promises not to screw it up
SUNNYVALE, Calif. & NEW YORK--(BUSINESS WIRE)--
Yahoo! Inc. (NASDAQ: YHOO) and Tumblr announced today that they have
reached a definitive agreement for Yahoo! to acquire Tumblr.
Per the agreement and our promise not to screw it up, Tumblr will be
independently operated as a separate business. David Karp will remain
CEO. The product, service and brand will continue to be defined and
developed separately with the same Tumblr irreverence, wit, and
commitment to empower creators.
With more than 300 million monthly unique visitors and 120,000 signups
every day, Tumblr is one of the fastest-growing media networks in the
world. Tumblr sees 900 posts per second (!) and 24 billion minutes spent
on site each month. On mobile, more than half of Tumblr's users are
using the mobile app and do an average of 7 sessions per day. Its
tremendous popularity and engagement among creators, curators and
audiences of all ages brings a significant new community of users to the
Yahoo! network. The combination of Tumblr+Yahoo! is expected to grow
Yahoo!'s audience by 50 percent to more than a billion monthly visitors,
and to grow traffic by approximately 20 percent.
The deal offers unique opportunities for both companies. Tumblr can
deploy Yahoo!'s personalization technology and search infrastructure to
help its users discover creators, bloggers, and content they'll love. In
turn, Tumblr brings 50 billion blog posts (and 75 million more arriving
each day) to Yahoo!'s media network and search experiences. The two
companies will also work together to create advertising opportunities
that are seamless and enhance the user experience.
Total consideration is approximately $1.1 billion, substantially all of
which is payable in cash.
"Tumblr is redefining creative expression online," said Yahoo! CEO
Marissa Mayer. "On many levels, Tumblr and Yahoo! couldn't be more
different, but, at the same time, they couldn't be more complementary.
Yahoo is the Internet's original media network. Tumblr is the Internet's
fastest-growing media frenzy. Both companies are homes for brands -
established and emerging. And, fundamentally, Tumblr and Yahoo! are both
all about users, design, and finding surprise and inspiration amidst the
"I've long held the view that in all things art and design, you can feel
the spirit and demeanor of the creator. That's why it was no surprise to
me that David Karp is one of the nicest, most empathetic people I've
ever met. He's also one of the most perceptive, capable entrepreneurs
I've ever worked with," continued Mayer. "David's respect for Tumblr's
community of creators is awesome. I'm absolutely delighted to have him
join our team."
David Karp, CEO of Tumblr, addressed the Tumblr community, "Our team
isn't changing. Our roadmap isn't changing. And our mission — to empower
creators to make their best work and get it in front of the audience
they deserve — certainly isn't changing. But we're elated to have the
support of Yahoo! and their team who share our dream to make the
Internet the ultimate creative canvas. Tumblr gets better faster with
more resources to draw from."
The transaction, which is subject to customary closing conditions, is
expected to close in the second half of the year.
Yahoo! will host a conference call at 9:00 a.m. Eastern Time today to
discuss this announcement. A live webcast of the conference call can be
accessed through the company's Investor Relations website at http://yhoo.client.shareholder.com/events.cfm?CalendarID=8.
In addition, an archive of the webcast will be accessible for 90 days
through the same link.
Tumblr is a media network powered by an army of independent creators and
home to an audience of more than 300 million unique visitors. Founded by
David Karp in 2007, Tumblr is headquartered in New York City.
Yahoo! is focused on making the world's daily habits inspiring and
entertaining. By creating highly personalized experiences for our users,
we keep people connected to what matters most to them, across devices
and around the world. In turn, we create value for advertisers by
connecting them with the audiences that build their businesses. Yahoo!
is headquartered in Sunnyvale, CA, and has offices located throughout
the Americas, Asia Pacific (APAC) and the Europe, Middle East and Africa
(EMEA) regions. For more information, visit the pressroom (pressroom.yahoo.net)
or the company's blog (yahoo.tumblr.com).
This press release contains forward-looking statements that involve
risks and uncertainties concerning Yahoo!'s proposed acquisition of
Tumblr (including without limitation the statements contained in the
quotations from management in this press release), as well as Yahoo!'s
strategic and operational plans. Actual events or results may differ
materially from those described in this press release due to a number of
risks and uncertainties. The potential risks and uncertainties include,
among others, the possibility that the transaction will not close or
that the closing may be delayed; and that the anticipated benefits to
Yahoo!, including projected growth in audience and traffic, and benefits
to users and advertisers may not be realized. More information about
potential factors that could affect Yahoo!'s business and financial
results is included under the captions, "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations," in the Company's Annual Report on Form 10-K for the fiscal
year ended December 31, 2012 and Quarterly Report on Form 10-Q for the
quarter ended March 31, 2013, which are on file with the Securities and
Exchange Commission ("SEC") and available at the SEC's website at www.sec.gov.
Photos/Multimedia Gallery Available: http://www.businesswire.com/multimedia/home/20130520005659/en/
Media Relations Contact:
Sara Gorman, (408)
Joon Huh, (408) 349-3382
Source: Yahoo! Inc.
News Provided by Acquire Media