After a rumor spreading like a wild forest fire, Yahoo’s board of directors announced the ground breaking deal to buy the popular blogging community, Tumblr for $1.1 billion on Monday with official announcement coming a bit later.
This deal portrays the New York city tech scene where the micro blogging site was setup by a 26 yr old school dropout David Karp and launched in February 2007. There have been mixed reactions online. Some regular tumblr users say “Yahoo might introduce ads into the micro blogging side hence taking away the blogging experience”, whereas some business experts say “Tumblr does not have much impressive numbers, although has a large young target community”. “We have bought a growth opportunity and Yahoo’s intention is to let Tumblr remain an independent entity”, said Yahoo Inc. Chief Executive Marissa Mayer on CNBC. Here is who gained more wealth with this deal. Founder David Karp who owns an aprrox 25% will be getting $253 million, but the biggest portion of the deal goes to the Investors ($750 Million) who started investing in Tumblr in 2007. Karp is not the only Tumblr employee to make money out of this deal, about $66 Million will be split up between 178 employees who will get roughly $371,000 each.
To me this sounded more like a Facebook-Instagram deal. Yahoo also announced on Thursday that it will integrate content from Twitter directly into the news stream on their website.
Post By: Gazanfarulla Khan