The internet company is looking to align itself with the blogging site either by investments or, perhaps, by acquisition, according to a recent report from All Things D.
Since Marissa Mayer has taken the reigns at Yahoo, she has met with top executives from Tumblr, including the 22-year-old CEO David Karp, according to the report. And apparently there has been a stronger interest in an alliance more recently, sources told All Things D.
(Read More: Yahoo Wonder Kid Eyes More Start-ups After Summly Sale )
If Yahoo did end up buying Tumblr, it would have to shell out some serious cash. The company is reportedly valued at $800 million. According to an AdWeek report, Yahoo could pay as much as $1 billion.
Since Mayer became CEO, the company has acquired several companies including Summly, Astrid and Jybe. It's also been rumored to be eyeing Hulu, as well.
(Read More: Yahoo Acquires a Teenager's News Gathering Start-Up )