Here we go, folks! The Wall Street Journal is reporting that Yahoo’s board has approved a rumored deal to purchase Tumblr for $1.1 billion in cash money. Forbes reports Tumblr’s board, which includes reps from Union Square Ventures, Sequoia Capital and others, has already voted to approve the deal. If it’s true that the company has only a few months of runway left, they’d be fools not to.
It’s a happy enough ending for Tumblr’s investors (and employees lucky enough to have a significant amount of stock), sure, but it’s not exactly the stirring success story the New York startup scene might’ve wished for. (A YouTube’s nice, but a Google would be better.) Yahoo’s got a long history of snapping up startups and frittering away their potential, and $1.1 billion must dash a few hopes for Silicon Alley’s flagship. The company only made $13 million in revenue last year, but as of March it had 117 million unique users worldwide.
Then again, Tumblr last raised at an $800 million valuation.
One also wonders how long Tumblr’s enfant terrible CEO will last at a publicly traded company. AllThingsD reports that the deal stipulates he’ll stay for at least four years, retaining much of his control over a business unit that operates fairly independently. Place your bets accordingly.
As for you, Yahoo: Enjoy your Homestucks, your social justice cops, your crude porn and yes, your #RHOA GIFs. As one enraged Tumblr user put it, here’s what you can probably expect to find when you take over: