US tech giant Yahoo has snapped up Tumblr in a major US deal that will reportedly net the blogging site's 26-year-old founder a 250 million US dollar (£164 million) fortune six years after he started it.
The 1.1 billion US dollars (£720 million) deal makes New Yorker David Karp - who attended high school for only a year - the latest internet whiz-kid to scoop an astronomical windfall from a web start-up.
The move will give Yahoo its own social media platform as it seeks to attract younger and trendier internet users in a bid to match rivals Google and Facebook.
Yahoo, led by chief executive Marissa Mayer, said: "Per the agreement and our promise not to screw it up, Tumblr will be independently operated as a separate business. David Karp will remain CEO."
Best known for its clean, simplistic design, Tumblr claims to host more than 108 million blogs, with over 50 billion posts. Its roster of celebrity users features pop singer Beyonce and media mogul Rupert Murdoch.
In his blog on Tumblr, Mr Karp announced: "I'm elated to tell you that Tumblr will be joining Yahoo." The message went on to promise users of the site that it would not "compromise" on its vision of making the site the "ultimate creative canvas" before signing off "F*** yeah, David".
Described as "one of the fastest-growing media networks in the world", Tumblr boasts more than 300 million monthly unique visitors and 120,000 sign-ups every day. But it has struggled to convert a fast growing user base into revenues - a common feature among even the most popular social networks.
Yahoo has 700 million customers worldwide and employs 11,500 people in 26 countries, including the UK where it has an office in London. Its services include a search engine and an email client called Yahoo! Mail. But it has been under pressure to innovate to better compete with its internet rivals.
Executives believe the deal will grow Yahoo's audience by 50% to more than a billion monthly users, and grow traffic by around 20%. It will also result in "seamless" advertising opportunities, the company said.
Ms Mayer said: "On many levels, Tumblr and Yahoo couldn't be more different, but, at the same time, they couldn't be more complementary." Mr Karp said: "We're elated to have the support of Yahoo and their team who share our dream to make the internet the ultimate creative canvas."
The top 10 Fortune 500 companies
Yahoo deal 'nets Tumblr head £164m'
Wal-Mart Stores, or Walmart, is a retailer that runs chains of discount department and warehouse stores around the world. Founded by Sam Walton in 1962, it is headquartered in Bentonville, Arkansas and has around 8,500 stores in 15 countries, under 55 different names.
Exxon Mobil Corporation, or ExxonMobil, is an oil and gas corporation formed on November 30, 1999 by the merger of Exxon and Mobil. Headquartered in Irving, Texas, it has 37 oil refineries in 21 countries.
Chevron Corporation is an energy company headquartered in San Ramon, California. It is active in more than 180 countries and is engaged in every aspect of the oil, gas, and geothermal energy industries, including exploration and generation.
Phillips 66 is a holding company - created when ConocoPhillips spun off its downstream assets - that only began trading on the New York Stock Exchange on May 1, 2012. Headquartered in Houston, Texas, the company has approximately 14,000 employees worldwide.
Berkshire Hathaway, controlled by legendary investor Warren Buffet, is a multinational holding company headquartered in Omaha, Nebraska. The company wholly owns GEICO, Dairy Queen, Fruit of the Loom and Helzberg Diamonds, as well as half of Heinz and significant minority holdings in American Express and The Coca-Cola Company.
At number 6 on the list, it's highest ever position, is iPhone and iPad manufacturer Apple. And Fortune managing editor Leigh Gallagher told CBS News that the computer giant could be even higher up the list if companies were ranked differently. Apple breaks into the top 10 for the first time this year," Gallagher said. "But if you were to rank the Fortune 500 by profits not revenues, it would be number two behind Exxon."
General Motors Company, or GM, is a multinational automotive corporation headquartered in Detroit, Michigan. It employs more than 200,000 people and manufactures the Chevrolet, Buick, Cadillac and Vauxhall brands, among others.
General Electric Company, or GE, operates in four segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial. Its foundation dates back to 1889, when Drexel, Morgan & Co. helped Thomas Edison to merge his many electricity-related companies to form Edison General Electric Company.
Valero Energy Corporation is the world's largest independent petroleum refiner and marketer. It has 16 refineries and 10 ethanol plants stretching from the US West and Gulf coasts to Canada, United Kingdom and the Caribbean.
Ford Motor Company (also known as Ford) is headquartered in Dearborn, Michigan, a suburb of Detroit. Founded by Henry Ford in 1903, it is still controlled by the Ford family, which now has a minority stake.