Yahoo Buys Tumblr

The New York Times reports:

The board of Yahoo, the faded Web pioneer, agreed on Sunday to buy the popular blogging service Tumblr for about $1.1 billion in cash, the companies announced Monday, a signal of how the company plans to reposition itself as the technology industry makes a headlong rush into social media. The deal would be the largest acquisition of a social networking company in years, surpassing Facebook’s $1 billion purchase of Instagram last year.

Tumblr reportedly hosts about 100 million blogs. Yahoo bought Flickr in 2005. Today’s deal will earn 26 year-old Tumblr founder David Karp an estimated $250M.