Yahoo's Mayer: Tumblr Will Operate Independently

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Yahoo CEO Marissa Mayer said that the $1.1 billion deal for Tumblr is "part of enhancing our growth story" and the effects will start to be felt in 2014. "There is a lot of new energy in the core of Yahoo," she said. "I think that's really exciting." (Read More Below the Video.)

"We really wanted to be able to move faster as a company. I think you can see that we've achieved a lot more velocity and I think that's what's being felt right now,"

To value the deal, Mayer said that the traditional valuation analysis was done and "all of those methodologies supported this valuation."

"Tumblr has a really good thing going. I'm cognizant of the fact that we don't want to screw that up," Mayer added. "We're going to operate Tumblr independently."

Yahoo's $1.1 billion acquisition is an attempt to make the company more relevant to a younger audience through the social web.

(Related: Yahoo to Buy Tumblr, Vows 'Not to Screw It Up' )

Mayer dismissed the idea that Yahoo bought Tumblr to "buy some cool."

"You never do an acquisition this large to be "cool" Mayer said. "We bought a growth opportunity. We've been very clear that our goal is to grow, to grow with the market and eventually to grow faster than the market. Tumblr is hyper-growth. The massiveness of that user base is amazing, so growing our audience by 50 percent to more than 1 billion users per month that is huge," she said.

Yahoo CEO Marissa Mayer and Tumblr CEO David Karp spoke with CNBC's "Squawk on the Street."

Karp said that creating Tumblr was a "mission" to serve the online creative community, which the company was focused on. "This is an incredible opportunity to serve that mission for a long time. This is a long-term thing for me," he said.

"I have no idea what Marissa's expectations are, but this is still my baby and where I'm giving all of my heart and attention," he added.

(Read More: Wait. Didn't Yahoo Try a Deal Like This Before? )

Comparisons have been made between Tumblr and Google (GOOG)'s 2006 acquisition of YouTube. At the time, YouTube had virtually no revenue but is now one of the company's most valuable brands.

Like YouTube, Tumblr offers users a platform to create original content and share with others. However, Tumblr content is primarily text, animations and images, which generally draw lower premiums from advertisers compared to video. Tumblr allows sharing of videos, but to a lesser extent than video-focused YouTube.

Similar comparisons have also been made to Yahoo's 1999 acquisition of GeoCities , which was shuttered in 2009. Yahoo insiders dismissed the comparison to GeoCities and said that management believes Tumblr is one of the rare transformative sites on the Internet, according to the New York Times.

(Read More: Yahoo Board Agrees to Buy Tumblr for $1.1 Billion )

In the first trading session since the announcement, Yahoo shares (YHOO) closed up 0.23 percent and continued trading higher - by over 1 percent - early Tuesday.

Disclosure: CNBC has a content-sharing partnership with Yahoo's finance site.

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