ACQUISITIONS: Yahoo has bought several startups primarily to obtain more engineering talent to build help build better mobile applications. It also bought London startup Summly, which makes a mobile application created by a teenage entrepreneur who sought an easier way to read news stories and other content on the smaller screens of smartphones.
Now, it is buying Tumblr in the most expensive acquisition since the Sunnyvale, Calif., company bought online search engine Overture a decade ago for $1.3 billion in cash and stock. Yahoo is paying mostly cash and expects to complete the deal by the end of the year. Mayer is betting Tumblr will provide Yahoo with a captivating hook to reel in more traffic and advertisers on smartphones and tablet computers. More than half of Tumblr's users connect through the mobile app and engage in an average of seven visits per day.
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