Yahoo! ended up buying the hybrid popular social networking and blogging platform "Tumblr" for a price tag of about $1.1 billion.
Founded by David Karp in 2007 from a bedroom of his mother's New York apartment, Tumblr is one of the most popular blogging platforms in the world with around 217 million users worldwide, hosts 105 million blogs, has more than 300 million unique views every month, 120,000 signups every day, and 900 new posts every second.
The company employs 175 people and claims to have more than 100 million blogs.
Tumblr will be operated as a separate business under Yahoo, and David Karp will remain its CEO.
Tumblr, which has $13 million in earning in 2012, will offer Yahoo a great way to revitalize its user base and expand its mobile ad efforts to a much larger audience.
The two companies will work together to create advertising opportunities that are seamless and enhance user experience.
"The combination of Tumblr+Yahoo! could grow Yahoo!'s audience by 50% to more than a billion monthly visitors, and could grow traffic by approximately 20%," wrote Marissa Mayer, Yahoo's CEO, adding further, she said:
"In terms of working together, Tumblr can deploy Yahoo!'s personalization technology and search infrastructure to help its users discover creators, bloggers, and content they'll love. In turn, Tumblr brings 50 billion blog posts (and 75 million more arriving each day) to Yahoo!'s media network and search experiences."
Addressing the Tumblr community David Karp says, "Our team isn't changing. Our roadmap isn't changing. And our mission -- to empower creators to make their best work and get it in front of the audience they deserve -- certainly isn't changing. But we're elated to have the support of Yahoo! and their team who share our dream to make the Internet the ultimate creative canvas. Tumblr gets better faster with more resources to draw from."
On the other hand, WordPress' co-founder Matt Mullenweg, posted that over 72,000 new blog posts were imported within a single hour.
"This is a massive spike, considering that WordPress normally import 400 to 600 posts an hour from Tumblr," Mullenweg added.