Yahoo takes big leap with $1.1B deal for Tumblr
SAN FRANCISCO - Yahoo is buying online blogging forum Tumblr for $1.1 billion as CEO Marissa Mayer tries to rejuvenate an Internet pioneer that had fallen behind the times.
The deal announced Monday is Mayer's boldest move since she left Google 10 months ago to lead Yahoo's latest comeback attempt. It marks Yahoo's most expensive acquisition since buying online search engine Overture a decade ago for $1.3 billion.
Taking over Tumblr will devour about one-fifth of the $5.4 billion in cash that Yahoo had in its accounts at the end of March.
CEO's mom gushes over billion-dollar baby
NEW YORK - As a teenager, Tumblr CEO David Karp would canvass the streets of New York City's Upper West Side, offering to build websites for local businesses. After his freshman year of high school, the precocious, computer-savvy kid decided to drop out altogether to devote more time to his passion for technology.
A few years later, Karp built Tumblr - the wildly popular blogging forum - from his tiny childhood bedroom, hunched over his laptop with bags of Tostitos. And on Saturday, the 26-year-old technology wunderkind returned home to inform his mother that, in a game-changing transaction, Yahoo was buying Tumblr for $1.1 billion.
The deal was a transcendent moment for Karp, who created one of the world's busiest websites. It boasts 75 million daily posts and a user base that's loyal, young and hip. While Facebook has morphed into a mainstream social network where grandparents talk golf, Tumblr is still that little corner of the Internet where the cool kids hang out.
United restarts 787 flights
United Airlines put its 787 back in the air on Monday, with both the airline and Boeing hoping to put the plane's four-month grounding behind them.
Seamless, GrubHub merge
Rival online takeout services Seamless North America and GrubHub announced plans to combine and create a new company covering more than 20,000 restaurants in 500 U.S. cities.
Consumer spending rise
Consumer spending is likely to pick up this year, says a National Association for Business Economics survey of economists.
The Associated Press