Yahoo May Acquire Tumblr for $1 Billion

Facebook isn’t the only company that can pay upwards of $1 billion to acquire a hot digital property.

According to AllThingsD, Yahoo may be seriously considering the acquisition of social networking platform Tumblr.

Earlier this week, Yahoo CFO Ken Goldman spoke at JP Morgan’s Global Technology conference and underscored the need for the aging Silicon Valley Internet giant to attract more users from the coveted 18-to-24-years-old age bracket. Along with more marketing, he explicitly said Yahoo needed to be “cool again.”

Buying Tumblr could certainly go a long way in that effort, industry sources say.

“One of our challenges is we have had an aging demographic,” said Goldman in the report. “Part of it is going to be just visibility again in making ourselves cool, which we got away from for a couple of years.”

Knowledgeable but unnamed individuals close to the matter say that a “strategic alliance” and “investment in or outright buy” of Tumblr is possible.

The talks to make it happen are, we’re told, “serious.”