Posted in: Online Services, Rumors, Social Networks

Yahoo considers acquiring Tumblr for $1 billion

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Yahoo is the second most popular search engine on the web (according to Alexa.com) but has had issues in the last couple of years to stay relevant. Among its top problems is its aging demographic, which contributes to the company’s lack of coolness. Yahoo’s Chief Financial Officer Ken Goldman even admitted this, saying the company has to make itself cool again, something it “got away from for a couple of years”.

Sources, allegedly close to both sides claim that Yahoo has been in “serious” talks with popular blogging service Tumblr on some kind of a collaboration deal or even a complete acquisition. Tumblr has what Yahoo wants – the large user base in the 18-to-24 age group.

Tumblr has been hard at work raising money as it prefers to steer clear of full-on ads in its website’s feed. The New York-based company is currently valued at around $800 million but is expected to hit a price around the sweet $1 billion mark when it’s done raising money in 2013.

Yahoo could be very interested in acquiring Tumblr for around that price, although no specifics have been confirmed just yet. Yahoo generally has been focusing on smaller acquisitions, but Tumblr which currently has around 107.8 million blogs with around 50.6 billion posts might be digging a bit deeper in its pockets.

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