First with Flickr, and now with Tumblr, it looks like Yahoo is trying to purchase everything without an "e" in the name. All Things D reports:
The Yahoo board has approved a massive $1.1 billion all-cash deal to buy Tumblr. It’s not clear when the official vote was taken, but sources close to the board said the acquisition was a foregone conclusion and was unanimously approved by the directors of Silicon Valley Internet giant. The deal will likely be announced Monday morning, said numerous sources.
In terms of what will change for users of Tumblr, it doesn't look like much, which is a good thing:
As part of the Yahoo deal, Tumblr CEO David Karp — who will get a windfall of cash from the acquisition — will stay at Yahoo for four years at least and retain a lot of control over the service, much in the same way Instagram CEO Kevin Systrom does at Facebook. But, as there, Yahoo will undergird Tumblr’s nascent advertising business with its large and established infrastructure, said sources.
Some new ads so that Yahoo can make some money, and Tumblr is sure to bring tons of new traffic for Yahoo, so the acquisition makes sense.
My only remaining question: What does Marco Arment get out of this deal, if anything?