We all knew it was going to happen but it's now official. Tumblr has been acquired by Yahoo for $1.1 bllion in a cash deal. Tumblr will keep David Karp as CEO. In a press release Yahoo says:
We promise not to screw it up. Tumblr is incredibly special and has a great thing going. We will operate Tumblr independently. David Karp will remain CEO. The product roadmap, their team, their wit and irreverence will all remain the same as will their mission to empower creators to make their best work and get it in front of the audience they deserve. Yahoo! will help Tumblr get even better, faster.
The announcement comes after rumours that Yahoo's board had approved the deal on Sunday.
— marissamayer (@marissamayer) May 20, 2013