Yahoo Buying Tumblr

Online blogging site Tumblr is being bought by Yahoo for a big price tag.

FOX Business Network’s Dennis Kneale reports:

Yahoo will pay $1.1 billion to buy Tumblr, a photo-blog site that is to images what Twitter is to 140 character messages. Tumblr has 117 million users. It’s strong among people under age 25, giving Yahoo a new claim to cool. Never mind that Tumblr had only $13 million in ad sales last year. Yahoo’s CEO Marissa Mayer says Tumblr will add significant revenues next year. But advertisers could balk at some of the fringy kinky content on the site. And a big question is whether Tumblr’s hipster fans will stick around, they are up in arms about this deal.

Dennis Kneale, FOX News Radio.