Marissa Mayer, the Chief Executive Officer of Yahoo! has hinted that the company is planning to acquire Tumblr for about US$ 1.1 billion to expand its presence in the social media.

Mayer said that the discussions are going on with Tumblr's David Karp for the proposed acquisition. The takeover will allow Yahoo! to expand its reach to the internet users with 15 billion page views a month. Tumblr has been doing well with the marketers and investors where Yahoo! has faced problems in recent times.

The deal if finalised would become the biggest since previous year’s takeover of Instagram by social networking giant, Facebook for US$ 715 million. Tumblr has been successful in expand its presence in the mobile platforms with advertising and its mobile audience has now surpassed its web audience. Tumblr was founded in 2007 by its CEO David Karp and has since gained popularity across the world.

Meanwhile, Mayer is planning to announce updates to the company’s Flickr photo-sharing site at a press event in New York on 20 May, 2013. Yahoo! had sent invitations to media outlets yesterday for the media event in New York.