Tumblr's Explosive Growth

Yesterday, Yahoo has officially confirmed the acquisition of Tumblr in a $1.1 billion all cash deal. The deal marks Yahoo's biggest acquisition since 2003, when the company had acquired the search engine marketing firm Overture Services for $1.6 billion. Tumblr will be run independently under the leadership of CEO David Karp.

Launched in 2007, Tumblr now hosts 109 million blogs with a total of 51 billion blog posts. The platform currently sees 900 posts per second, making it one of the fastest growing media networks in the world. For Yahoo, the deal is primarily about Tumblr's large user base, as the site's revenue is negligible from Yahoo's point of view: in 2012, Tumblr reportedly made $14 million in revenue - Yahoo made $5 billion.