As part of its ongoing effort to reinvent itself, Yahoo agreed to buy the blogging service Tumblr for about $1.1 billion in cash, The New York Times reports.
If the deal is approved, it would be the biggest yet under the tenure of Yahoo CEO Marissa Mayer and a major move into social media for the company.
It would also top Facebook’s 2012 acquisition of Instagram for $1 billion.
Founded in 2007, Tumblr has a young, active user base, with over 108 million image-centric blogs. Owning that would expand Yahoo's user base.
Or will it? Analysts and investors are likely to question immediately whether buying a site that has struggled to generate revenue makes any sense.