Only a couple of days ago we reported that Yahoo was apparently interested in acquiring Tumblr for $1 billion. Tumblr is believed to be ideal for brand advertising as its user base majorly consists of young and creative crowd. Yahoo has recently been on an acquiring spree as it hopes to turn itself around with ex-Googler Marissa Mayer as CEO. The Wall Street Journal claims via Twitter that Yahoo’s board has approved a $1.1 billion cash deal for the acquisition of Tumblr.

It is being said that Yahoo will be officially announcing this acquisition tomorrow at a media event in New York. Obviously it is a bit too soon to comment on how exactly Yahoo plans on using Tumblr and its substantial user base to its advantage. Despite being one of the major blogging platforms out there, Tumblr’s revenues are termed as “modest.” Perhaps we might see a major change in direction with regards to revenue generation? One of the reasons behind this acquisition is believed to be Yahoo’s aim to offer a competitor for Google’s popular Blogspot service, with Tumblr now reportedly securely under its belt, that aim doesn’t seem too far-fetched now.

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