The Yahoo! board has reportedly approved a deal to pay $1.1 billion in cash for the blogging site, Tumblr. Marissa Mayer, Yahoo!’s CEO is expected to announce the deal this Monday at an event in Manhattan. The search engine has been on an acquisition streak under Mayer as part of the company’s efforts to reach a younger and more mobile audience.
The deal to buy the blogging website that is popular among yuppies is a demographic that Yahoo! has had trouble reaching. This will also be the largest acquisition of Marissa Mayer’s tenure. The former Google executive took over the reins of the struggling Internet company in 2012 and hasn’t been afraid to make such acquisitions.
But Yahoo! remains a giant in the Internet world, with around 700 million visitors to its site every month. The majority of its revenues come from adverts.
One factor is still unclear, though; we don’t know if that deal with Yahoo! would result in more adverts in Tumblr.