Yahoo! has announced that it has agreed a buy-out of the blogging service Tumblr, in a takeover deal that was confirmed on Monday and is thought to be worth around $1.1billion.
Tumblr currently has around 100 million active users around the world, who post and share blogs containing text, images and videos amounting to roughly 90 million posts a day.
At the moment Tumblr is largely ad-free, and generated just $13million in revenue last year. This is an area that Yahoo! will almost certainly look to develop as part of the takeover, as the company looks to move into other ventures to try and catch up with runaway market leader Google.
In a post published on her own Tumblr blog, Yahoo! CEO Marissa Mayer said: "Tumblr is incredibly special and has a great thing going. We promise not to screw it up."
"In terms of working together, Tumblr can deploy Yahoo!'s personalisation technology and search infrastructure to help its users discover creators, bloggers, and content they'll love. The two companies will also work together to create advertising opportunities that are seamless and enhance user experience."
Meanwhile, Tumblr founder David Karp said of the takeover: "Yahoo! is the original internet company, and Marissa and her team share our dream to make the internet the ultimate creative canvas. I couldn't be more excited to have her help. We won't let you down."