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The announcement reportedly signifies a changing trend in the technology industry, as large corporations like Yahoo, Facebook, and Google acquire start-up Internet companies that generate low amounts of revenue as a way in which to connect with sizeable, fast-growing online communities.
The Wall Street Journal stated that the purchase of Tumblr would satisfy the company's need for "a thriving social-networking and communications hub." On August 2, 2013, Yahoo Inc.
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Yahoo was founded by Jerry Yang and David Filo in January 1994 and was incorporated on March 2, 1995. The term "hierarchical" described how the Yahoo database was arranged in layers of subcategories.
By 1998, Yahoo was the most popular starting point for web users. Its stock price skyrocketed during the dot-com bubble, Yahoo stocks closing at an all-time high of $118.75 a share on January 3, 2000.