Yahoo! Inc. and Tumblr Inc. announced that they have reached a definitive agreement for Yahoo to acquire Tumblr, a company that provides a microblogging platform and operates a social networking Web site, for $1.1 billion.

Per the agreement, Tumblr will be independently operated as a separate business, according to Yahoo. The product, service and brand will continue to be defined and developed separately.

With more than 300 million monthly unique visitors and 120,000 signups every day, Tumblr is one of the fastest-growing media networks, Yahoo says. It says the combination of Tumblr and Yahoo is expected to expand Yahoo's audience by 50 percent to more than a billion monthly visitors, and to increase traffic by about 20 percent.

The agreement offers unique opportunities for both companies, Yahoo says. Tumblr can deploy Yahoo's personalization technology and search infrastructure to help its users discover creators, bloggers and content. And Tumblr brings 50 billion blog posts to Yahoo's media network and search service. The two companies will work together to create advertising opportunities.

"Tumblr is redefining creative expression online," Marissa Mayer, CEO of Yahoo, said in a statement. "On many levels, Tumblr and Yahoo! couldn't be more different, but, at the same time, they couldn't be more complementary. Yahoo is the Internet's original media network. Tumblr is the Internet's fastest-growing media frenzy.”

"Our team isn't changing,” David Karp, CEO of Tumblr, said is a statement. “Our roadmap isn't changing. And our mission — to empower creators to make their best work and get it in front of the audience they deserve — certainly isn't changing."

The transaction, which is subject to customary closing conditions, is expected to close in the second half of the year.

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