Tumblr, the microblogging website with months left in its money reserves and a fairly sizable suitor, has accepted Yahoo's $1.1 billion offer.
Here are the details from this morning's press conference:
The Deal
Yahoo will acquire Tumblr for $1.1 billion, all in cash. The deal will finish in the second half of 2013.
Control of Tumblr
Tumblr's founder David Karp, 26, will remain as Tumblr's CEO, and is now worth an estimated $220 million, according to The Guardian. Karp will report to Mayer and the brands won't co-mingle.
Additionally, all of Tumblr's current employees will remain. Yahoo will help Tumblr hire more engineers and, yes, ad sales representatives.
What Yahoo Gets Out of The Deal
Yahoo will, if everything goes according to plan, get a noticeable boost in revenue next year, and increased search traffic from Tumblr users. Yahoo CEO Marissa Mayer said she believes the deal will send Yahoo over the 1 billion user mark.
Mayer also said Yahoo will feature Tumblr blogs on its media properties.
Ads on Tumblr
Yahoo will be selling ads on Tumblr, specifically the site's dashbord, somewhere down the line. Tumblr bloggers, too, will be given the opportunity to sell ads on their websites as well.
Mayer also stated that she doesn't believe Tumblr's pornographic material, of which there is plenty, will be an issue due to the sheer variety of material Tumblr users create.
The Statements
In addition to the standard release, Mayer also announced the purchase of Tumblr on Yahoo's official blog - a Tumblr blog.
"We promise not to screw it up," She said. "We will operate Tumblr independently. David Karp will remain CEO. The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve."
Similarly, Karp and his team made an announcement on Tumblr's official blog, reassuring users that the service won't change.
"Before touching on how awesome this is, let me try to allay any concerns: We're not turning purple," Karp said. "Our headquarters isn't moving. Our team isn't changing. Our roadmap isn't changing. And our mission –– to empower creators to make their best work and get it in front of the audience they deserve –– certainly isn't changing."
But it appears at least a small portion of Tumblr's users aren't thrilled with the deal: imports from Tumblr to WordPress ticked up from 400 to 600 blog posts an hour to 72,000 according to WordPress founder Matt Mullenweg.
