‘Can somebody please tell me how Yahoo still makes money?’. That is the popular joke doing rounds on micro-blogging site Twitter. In a move that is viewed by many as one to save itself from falling from grace, Board of Directors of Yahoo have sanctioned the purchase of Tumblr, another blogging site for a cool $1.1. Billion. The rumors have been adrift since Friday that a deal could be struck and it seems like the grapevine has come true.
There are reports that some of the executives at Tumblr are not too happy with the acquisition as they valued the company at a lot higher than the $1.1 Billion mark that Yahoo has paid, and this could lead to them rejecting the buyout offer. Yahoo making the offer simply would not mean Tumblr accepting that and there could still be a late twist in the tale and drama here.
There is a Yahoo press conference scheduled for Monday in New York at 5 PM EST and there is a fat chance that we could hear more news about Tumblr and this proposed acquisition. Tumblr is one of the most popular free blogging platforms and if the deal does go through, we just hope Yahoo does not change too many things there.