Yahoo purchased Tumblr in 2013 for $1.1 billion in cash.
The deal was announced on May 20, 2013, during Marissa Mayer’s tenure as Yahoo’s chief executive. Tumblr had been founded by David Karp in 2007 and had grown into a highly influential blogging and social-networking platform, especially among younger internet users and creative communities.
Yahoo said Tumblr would continue operating as a distinct service, and Karp remained Tumblr’s chief executive after the acquisition. The purchase was intended to give Yahoo a stronger presence in social media and connect it with Tumblr’s rapidly expanding audience.
The acquisition later became controversial. Tumblr struggled to meet Yahoo’s financial expectations, and Yahoo wrote down hundreds of millions of dollars from the platform’s value. Verizon acquired Yahoo in 2017 and eventually sold Tumblr to Automattic, the company behind WordPress.com, in 2019.