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Office Space: Tumblr's New York Digs

By Mark Milian - 2013-05-20T12:56:43Z

Photograph by Elizabeth Lippman/Bloomberg

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Inside the Hip New York Startup

Yahoo! Inc. is buying blogging network Tumblr Inc. for about $1.1 billion as Chief Executive Officer Marissa Mayer seeks to lure users and advertisers with her priciest acquisition to date.

Tumblr, headquartered in New York, will continue to host its more than 108 million blogs, while CEO and founder David Karp, 26, will remain in charge of the website, “per the agreement and our promise not to screw it up,” Sunnyvale, California-based Yahoo said today in a statement.

Mayer, CEO of the biggest U.S. Web portal since July, is betting that Tumblr will help transform Yahoo into a hip destination in the era of social networking as she challenges Google Inc. and Facebook Inc. in the $17.7 billion display ad market. The price she’s paying -- about a fifth of Yahoo’s $5.4 billion in cash -- underscores the deal’s importance to Mayer’s turnaround effort.

Tumblr's network of some 108 million blogs has become the hip place for people to display their artwork and poetry online. The company's headquarters, located in New York's startup-friendly Flatiron District, is equally cool with its quirky paintings and high-tech beer tap. Here's a look inside the offices.