Yahoo is spending $1.1 billion to buy the six-year-old blogging site Tumblr. The acquisition is the biggest yet for Yahoo CEO Marissa Mayer, and is part of her continuing push to give Yahoo credibility with a younger crowd, and make it a big player in the rapidly expanding world of social media and mobile devices. Tumblr is a popular site with an estimated 100 million users, but a billion bucks is a lot to pay for a company that has so little revenue–just $13 million last year. The trick will be to introduce advertising onto Tumblr without wrecking the user experience. The Wall Street Journal says Yahoo plans to allow David Karp, Tumblr’s 26-year-old CEO, “to continue to run the site and operate largely separately from the rest of Yahoo, people familiar with the matter said.”
The stock market shoots for the sky with more new records and no end in sight for the bull market. The Dow Jones index rose another 1.56 percent last week. A new report out today from business economists raises their outlook for growth and jobs over the next year. Last Friday’s report on consumer confidence from the University of Michigan added to the sense of optimism. The recent tumble for gold and other metals prices could send more investors into stocks.
Ben Bernanke gives his view of the economy this week. The Federal Reserve Board chairman will testify Wednesday before the Joint Economic Committee of Congress. We’ll find out more about how the improving housing market is adding to the US economy when new home sales are released Thursday. Home improvement chains Home Depot and Lowes announce their quarterly earnings reports this week.
Gasoline prices are expected to rise again when the U.S. Energy Department releases its weekly survey today. The most expensive gas is in the Midwest where average prices in several states are over $4 a gallon. With global oil prices staying close to $95 a barrel for light sweet crude, the biggest cause of rising gas prices is refinery supply problems.
It’s a good day for United Airlines and Boeing’s 787 jetliner. The Dreamliner planes are returning to service after being grounded for four months by the federal government because of smoldering batteries. United’s first 787 flight is scheduled for 11 a.m. from Houston to Chicago.
Richard Davies Business Correspondent ABC News Radio abcnews.com Twitter: daviesabc