Yahoo’s $1.1bn gamble on Tumblr

Yahoo said it is acquiring blogging service Tumblr for $1.1bn (€850m) cash, a bold bet by chief executive Marissa Mayer to revitalise the struggling internet pioneer by co-opting a web property with strong visitor traffic but little revenue.

The acquisition nets David Karp, 26, a high school dropout who started Tumblr six years ago, about $275m.

He signed off his own message to Tumblr members yesterday with “fuck yeah”.