Yahoo will pay $1.1 billion in cash for social-blogging service Tumblr, in a bid to gain access to the site's more than 100 million users. The companies said Tumblr will continue to operate on an independent basis. Tumblr generated $13 million in advertising last year. Former Google executive John Saroff wrote in a Tumblr post that the site could generate $108 million per year in ad revenue, but noted that Tumblr users are likely to resist having the site filled with ads.
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