Yahoo is buying Tumblr for about $1.1 billion. Tumblr is one of the most popular blogging services, with over 108 million blogs and buying this company could provide a wealth of user-generated content for Yahoo.

In the past, Yahoo acquisitions such as Geocities and Flickr have been flopped. Time has come to see if the new CEO can create a difference. Facebook, Microsoft and Google all showed interest previously in purchasing Tumblr, but it seems that only Yahoo has made it to the finals.