According to reports, Yahoo is in talks for an acquisition of blogging platform Tumblr.
Yahoo's board will reportedly meet this Sunday to discuss the offer further.
The stipulated transaction amount is rumored to be close to $1.1 billion in cash.
This deal, if successful, would be CEO Marissa Mayer's largest to date.
Yahoo's strategy has been to attract a younger user-base to its products and portals and this deal forms part of the same effort.
Yahoo also recently acquired Summly and Astrid among others in reportedly smaller deals.