Yahoo’s board of directors has reportedly approved a deal to buy New York-based blogging service Tumblr for $1.1bn and a formal announcement is expected as early as Monday.
The company is currently run by David Karp, a 26-year-old New Yorker who founded Tumblr in 2007, and he is expected to remain in his role. Tumblr is expected to continue to operate as an independent business.
Analysts believe that the acquisition will allow Yahoo to gain a larger social media presence and enhance its ability to attract younger audiences in its battle with internet rivals Google and Facebook.