Yahoo rocks technology world with Tumblr acquisition
In order to keep up with the quick pace at which technology is evolving, many companies are working hard to remain ahead of the competition. The internet is becoming a more centralized part of consumers' everyday lives, especially with the rise of smart phones and other mobile devices. Technology and software mergers and acquisitions are being designed to best accommodate users' needs for quick access to the latest social media tools.
On Monday, Yahoo announced that it will acquire Tumblr for $1.1 billion. Tumblr has been around for only six years, but it is already an established site, with over 100 million users. It is especially popular with younger adults, which is one of several reasons why Yahoo can benefit from the deal, according to several reports.
According to a Yahoo press release, David Karp will remain as CEO for Tumblr and the company will be independently operated as a separate business. The statement also underlined the fact that Yahoo promises to "not screw [Tumblr] up."
Yahoo CEO Marissa Mayer said in the press release that while her company and Tumblr might seem very different, at the same time, the two organizations are very complementary of one another.
"Yahoo is the internet's original media network," Mayer said. "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 everyday."
The technology acquisition will not alter Tumblr's approach to its daily operations, according to Karp. He explained in the press release that he is elated to partner with Yahoo as his company continues to work toward providing the ultimate "creative canvas" to users.