On a side note, another billion dollar exit (in terms of acquisition) for Sequoia. Their hit rate is phenomenal. In last one year, they have got Instagram, Kayak, Meraki and now Tumblr. Not to mention slew of other companies going public or ready to go public.

> It wasn't immediately clear whether Tumblr's board had also approved the deal.

So it's still essentially a rumor. Nothing official has been done. Microsoft may have made an offer but it means nothing until Tumblr accepts it.

1.1bn for a company that does 10mm/year in top line rev. Ouch.

Not saying this wasn't a smart move by yahoo. They need a loss leader to bring fresh blood to their profit centers.