Yahoo to acquire Tumblr for $1.1 bln cash

REUTERS - Yahoo Inc will buy online blogging service Tumblr for $1.1 billion in cash, the company said on Monday.

The deal, which will use about one-fifth of Yahoo's $5.4 billion in cash and marketable securities, is the largest by far since Yahoo Chief Executive Marissa Mayer took the reins in July in order to reverse a multi-year decline in Yahoo's business and its Web traffic.

(Reporting By Alexei Oreskovic; Writing by Ben Berkowitz; Editing by Gerald E. McCormick)