Yahoo Officially Acquires Tumblr for $1.1 Billion

Board approved deal on Sunday

Yahoo’s is spending over a billion to nab Tumblr.

The deal received board approval on Sunday, according to and The Wall Street Journal. And now Yahoo CEO Marissa Mayer has confirmed the deal in a blog post, completed with an animated gif that plays on the ubiquitous "Keep Calm and Carry On" sign (though this one reads cheekily "Now Panic and Freak Out").

"We promise not to screw it up," wrote Mayer. "Tumblr is incredibly special and has a great thing going. We will operate Tumblr independently. David Karp will remain CEO. The product road map, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve. Yahoo will help Tumblr get even better, faster."

The $1.1 billion deal gives Mayer the narrative shifting, transformative move she’s been looking for, and should go a long way toward revitalizing Yahoo’s somewhat moribund brand.

Of course, it remains to be seen how well the two companies will mesh, as Mayer alluded to. However, at first glance, the pair do seem to present a good fit. Yahoo needs Tumblr’s cachet among both engineers and advertisers while Tumblr needs big help taking monetization to the next level.

Tumblr’s ad potential is unproven, but brands love its creative possibilities and its lack of reliance on standard banners. If anything, they want to see more ways to advertise on the platform, which reaches over 117 million unique users a month.