Internet giant Yahoo! is set to snap up blogging site Tumblr in a deal worth $1.1bn according to new reports.
The search engine firm has promised to unveil 'something special' at a news conference arranged in New York at 10pm (UK time), with many fully expecting it to be the purchase of Tumblr.
Reports have suggested Yahoo!'s board has unanimously voted in favour of the purchase, with sources close to the matter telling AllThingsD the deal was a "foregone conclusion."
The acquisition would be CEO Marissa Mayer's biggest venture to date, with the search engine firm looking to expand away from its traditional bread and butter, SEO, in order to revitalise itself as a brand more appealing to younger generations.
Founded by American web developer David Karp in 2007, Tumblr attracted almost 75,000 members in its first few weeks. The site now boasts over 108 million blogs and employs some 175 staff members.
According to AllThingsD, Karp would receive a cash payment as well as working alongside Yahoo! for the next four years.
Although Yahoo! has made a number of smaller acquisitions, the size of this deal will certainly raise some eyebrows, especially considering the $1.1bn sum; Tumblr was previously valued at $800m.
Questions may also be asked over the money it can make from ads, with Tumblr only making a reported $13m in revenue last year, although AllThingsD reports sources claiming revenue could go up to as much as $100m this year.
At present, representatives from Yahoo! and Tumblr have refused to comment on the rumoured deal.
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