Yahoo Seeking to Acquire Tumblr

According to reports coming out today, Yahoo is engaged in negotiations to acquire the Tumblr blogging platform.  Microsoft and Facebook have apparently also expressed interest in the acquisition.  From Forbes:

the social blogging site is in serious talks with Yahoo YHOO -0.07%, which is looking to secure a strategic investment, partnership or even an outright acquisition. In the latter scenario, the price could top $1 billion, which would represent a 25% premium over the valuation Tumblr got in its last funding round.