Shopping for Cool: Yahoo! Board Reportedly Set to Weigh $1.1B Tumblr Deal

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Updated May 17, 8:20 p.m. EST: Yahoo!’s board plans to meet Sunday to decide whether to approve a $1.1 billion all-cash offer for New York-based social blogging platform Tumblr, AllThingsD’s Kara Swisher and Peter Kafka reported late Friday. If approved by Yahoo!’s board, the deal — which could still fall through — will be announced Monday. Earlier Friday, Yahoo! invited reporters to a “product” event in New York City on Monday at 5 p.m. Developing… Original post: Internet icon Yahoo! is in talks to buy New York-based social blogging platform Tumblr for as much as $1 billion, according to multiple reports. At that price, Tumblr would be pretty expensive, given that it reportedly only booked $13 million in revenue last year, but the deal could still make sense for Yahoo! That’s because Tumblr is extremely popular with the 18-to-24 year-old-set, precisely the demographic CEO Marissa Mayer is targeting as she attempts to turn the purple-hued Internet pioneer around following a multi-year slump. Tumblr has long been considered a major prize, so it’s no surprise that Yahoo! isn’t the only one interested in the company. Tumblr has also reportedly held talks with both Facebook and Microsoft, according to Forbes. Of course, Tumblr CEO David Karp may decide to hold out — he’s reportedly raising a new venture capital round that values the company at $1 billion. Or he may opt for a “strategic investment,” in which Yahoo! or some other big company invests in Tumblr, which would then remain independent. Tumblr has already raised $125 million at an $800 million valuation. (MORE: Marissa Mayer’s Wall Street Debut Sends Yahoo! Stock Surging) What Tumblr lacks in revenue, it makes up in “coolness.” The site has become a major destination for young urbanites to post photos, snarky comments, and other ephemera, and then share that content with others. Tumblr is also a very large and fast growing community. It had worldwide traffic of 117 million visitors in April, according to comScore data cited by AllThingsD. Tumblr claims it hosts 107.9 million blogs that have generated 50.7 billion posts. Taken together,

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