Yahoo! (YHOO) announced this morning that it is buying social blogging company Tumblr for $1.1 billion in cash.
Tumblr is a six-year old company based in New York. It is run by a charismatic 26 year-old entrepreneur named David Karp, who will pocket hundreds of millions of dollars on the deal and has therefore become an object of fascination for the New York tabloids.
Related: High School Dropout to Tech Titan
Tumblr allows users to create simple blogs and share words, pictures, and video. It is one of a handful of massive social publishing platforms created in the past decade, a group that also includes companies like Facebook (FB), Twitter, Instagram, and Pinterest.
Tumblr's audience is massive. The company's blogs receive 300 million unique visitors per month, and a staggering 120,000 new blogs are created every day (not blog posts--blogs). This mind-blowing traffic has made Tumblr one of the largest digital media companies in the world.
The Tumblr deal will vastly increase
Read More »from Yahoo CEO Marissa Mayer Buys Tumblr–Her Boldest Move Yet