Yahoo to acquire Tumblr for $1.1 bln cash

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Yahoo Inc will buy online blogging service Tumblr for $1.1 billion in cash, the company said on Monday.

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The deal, which will use about one-fifth of Yahoo's $5.4 billion in cash and marketable securities, is the largest by far since Yahoo Chief Executive Marissa Mayer took the reins in July in order to reverse a multi-year decline in Yahoo's business and its Web traffic.

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