Yahoo! Inc. Chief Executive Officer Marissa Mayer is staking the future of the largest U.S. Web portal on a six-year-old blogging startup with little revenue and a freewheeling stance on content created by users.
Tumblr Inc.’s $1.1 billion purchase by Yahoo! Inc. marks the biggest deal for a venture-backed New York startup, bringing a windfall for East Coast investors Union Square Ventures and Spark Capital while laying a foundation for further investing in the region’s entrepreneurs.