On May 20, Yahoo announced that it would purchase the popular blogging service Tumblr for $1.1 billion in cash. This would be the largest social media acquisition in recent history. The companies had been in serious talks for just days when Yahoo's board of directors approved the deal.
Tumblr's 26-year-old CEO David Karp is expected to reap almost $250 million from the acquisition. It is unknown whether he and Tumblr's 175 employees will remain with the company, and what will happen to their New York City headquarters. However, many of Yahoo's CEO Marissa Mayer's smaller acquisitions have helped shore up Yahoo's base of engineering experts by adding talent to revamp and broaden its product line and mobile services.