The Yahoo! Board of directors has reportedly approved a deal to pay $1.1 Billion in cash for Tumblr, the popular blogging site which also fronts as the biggest porn site in the world. This move has been rumored about for the past week or more, but it has now been reported in the Wall Street Journal that the deal has been approved. A news conference is expected to be held in New York City on Monday for the official announcement.
This is the first major acquisition for Yahoo! Under the leadership of Marissa Mayer who took over the top spot at Yahoo! Last summer. Analysts believe that Yahoo will use this purchase to help to connect to a younger, more active user base. Tumblr has been growing in popularity for several years and many people have been predicting a buyout to come soon, Yahoo! Appears to have been the company to make the move first.
While this is the biggest purchase under Mayer, it is not her only significant mover since she took over at Yahoo, and as of yet she has not turned the company around. Of course, it hasn’t yet been a year and many of her changes are still works in progress. Most people think she is doing a good job with the Internet giant, but investors are still hesitant. There will undoubtedly be more information about this deal to come in the next couple of days, but this is a big move for Yahoo and may be quite significant for the future of the company.
However, how is Yahoo going to deal with the fact that Tumblr is mainly known as the largest porn site ever, used by everyone to distribute pornographic images in every way possible? While Facebook doesn’t allow adult, Tumblr on the other hand, by some people’s recognition, is over 75% pornography — or at least where the traffic goes to.
How is Yahoo going to deal with this issue? Are they going to block all the adult blogs, or just pretend they aren’t there and assume that American sensibility has changed?
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