Yahoo will buy Tumblr for $1.1 billion, announcement coming soon

Yahoo, one of the Internet's bigger and oldest search engines, has agreed to buy blogging site, Tumblr, for a reported $1.1 billion dollars in cash. While the company will not likely make the official announcement before Monday (May 20), Yahoo's board has apparently approved the deal.

CNBC cited a source knowledgeable about the agreement on Sunday (May 19). It was not made public when exactly Yahoo had decided to make the acquisition.

This marks the biggest Internet purchase made by Yahoo's chief executive, Marissa Mayer. The motivation seems to be a desire to get involved with social networking sites and mobile-friendly Internet applications.

Considering that Tumblr is already one of the Internet's largest social sites -- over 108 million blogs exist there, only some of them made up entirely of GIFs -- this could bring Yahoo into the main arena of social networking.

Founded in 1994 -- before most people had ever used the web, let alone searched it -- as "David and Jerry's Guide to the World Wide Web" (named after founders David Filo and Jerry Yang), the site was quickly renamed and became one of the first major websites as the Internet took over the known universe.

Photo/Video credit: Yahoo