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Yahoo & Tumblr

In: Social Issues

Submitted By miiyo
Words 1297
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Yahoo! was founded on January 1994 by two Stanford graduates Jerry Yang and David Filo and its headquarter is situated in Sunnyvale, California. The current CEO is Marissa Meyers, who was a former Google executive and there are 11300 employees around the world working for Yahoo. Yahoo! is a multinational internet company offers service in 30 different languages. It is widely known for its web portal, search engine (Yahoo! Search) and other services such as Yahoo! Weather, Yahoo Finance, and Yahoo Mail etc.

Tumblr was founded by high school dropout David Karp on February 2007 and the headquarter is in New York City, New York. The current CEO is the founder David Karp and the company has around 175 employees. Tumblr is a microblogging and social media platform. There are 117.9 Million Blogs and 53.7 Billion posts. Users can posts text, photo, quote, link, and video from the browser, desktop, phone, or through email. They can customize their page with HTML code editing to match their preferences.

On May 19th 2013, Yahoo’s board approved the decision of purchasing Tumblr for $1.1 billion in cash and on May. 20th, the company announced this acquisition publically. Yahoo will be taking a risk of spending 1.1 Billion dollars in cash, which is one fifth of their reported $5.4 billion dollars in cash account from the end of March 2013. This has been one of the most expensive acquisitions since a decade ago when Yahoo bought out Overture, an online search engine, for 1.3 billion dollars in cash and stocks. On June 20th, the acquisition was completed and Yahoo! Successfully bought out Tumblr.
It was also announced that Tumblr will be independently operated as a separate business with its current CEO, David Karp.

These are some of the major acquisitions that Yahoo has made in the past. As you can see from this table, Yahoo spent quite a lot of money of acquiring

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