Tumblr is incredibly popular with 18- to 24-year-olds--and likely teens even younger than that--who flock to the blogging platform for hilarious GIFs and adorable cat photos. Yahoo is expecting Tumblr's 300 million monthly visitors and 105 million bloggers will grow its own traffic by 20 percent (though Yahoo will not be bringing its signature purple branding to Tumblr's blogs).
"[The future of technology] is not going to come from old curmudgeons sitting in glass towers, it's going to come from people who want to be creative and buck the trend. They can find some of these people in the Tumblr crowd itself," Blau says. "That is the type of crowd and community that Yahoo really needs to expand, to make them cooler, to give them a new audience."
Yahoo has already spent a few million here and there for nine mobile-focused start-ups this year, but Tumblr is by far its largest investment.
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