Yahoo, which has started to recover following the takeover of Marissa Mayer as chief executive officer, is reportedly eyeing the purchase of popular blogging site Tumblr.

While the move could benefit both companies with Tumblr having more operating funds and Yahoo getting more into the younger market, reports said that Tumbler employees think the $1.1 billion alleged offer from Yahoo is too low, Tech Crunch cites its sources who are close to the takeover offer.

The board of Tumblr is said to meet Sunday night, May 19, to tackle the proposed buy-out, said AllThingsD. But Forbes said two other tech giants are also interested in buying Tumblr, Microsoft and Facebook, and theTumblr board has already voted to approve the offer from Yahoo which has a lot of cash after it sold its Alibaba stake. .

Although Yahoo has a lock-up agreement with Tumbler to stop holding a bidding for the right to purchase the blogging platform, an insufficient offer from Yahoo is ground for Tumbler to thumb down the offer and seek better options.

The apprehension of Tumblr over the Yahoo offer is that it is quite on the lower end considering that Instagram, a much smaller Internet sensation, had an alleged acquisition price of $1 billion.

However, Tumblr workers may have not much choice except to accept Yahoo's offer since the firm has funds to operate for a few months only. Although Tumblr earned $13 million in 2012, expenses are at a faster rate of expansion.

Tumblr has 107.9 million blogs and 50.7 billion posts since it was established in 2007.

Yahoo decline to comment on the speculation, claiming it does not respond to questions based on rumours.

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