Business

Yahoo completes $1.1B deal for Tumblr

Marissa Mayer left Google to lead Yahoo.
Marissa Mayer left Google to lead Yahoo.

SUNNYVALE, Calif. — Yahoo Inc. has completed its $1.1 billion acquisition of the online blogging forum Tumblr.

The move represents Yahoo chief executive Marissa Mayer’s boldest move since she left Google Inc. a little less than a year ago to lead Yahoo’s comeback.

It also marks Yahoo’s most expensive acquisition since the company bought the online search engine Overture for $1.3 billion 10 years ago.

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Mayer is betting that Tumblr, a six-year-old service started by high school dropout David Karp, will help Yahoo bring in more traffic and advertisers on smartphones and tablets.

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Under the terms announced in May, Tumblr will remain independently operated, and Karp will continue to be CEO.

Associated Press