Yahoo has agreed a deal to buy New York-based blogging service Tumblr for $1.1bn in cash. In spite of the breadth and diversity of life online, there are relatively few opportunities to make the kind of acquisitions that make the industry stop and take stock. Yahoo's $1.1bn deal to buy Tumbler is one of those moments: a bold gaining that says chief executive Marissa Meyer means business.
Tumblr would be operated as a separate business. Yahoo's chief executive Marissa Mayer promised "not to screw it up". David Karp, will go on as chief executive officer of Tumblr. The deal is the biggest made by Ms Mayer since she took the helm last July, and she described the acquisition as a unique occasion.