(Source: Reuters)
Patched verison of the app closes the hole

Yahoo! Inc.'s (YHOO) new property Tumblr suffered a setback this week when some mobile users of its popular rich media microblogging service had their passwords stolen.

Tumblr announced the bad news via its blog Tuesday.  The vulnerability involved only affected users of Apple, Inc.'s (AAPL) iPad and iPhone operating system, iOS.  Writes Tumblr Product VP Derek Gottfrid, "We have just released a very important security update for our iPhone and iPad apps addressing an issue that allowed passwords to be compromised in certain circumstances."

The company has patched hole and a fixed app is available from Apple's App Store here.

Tumblr advises that users of the iOS app change their password both on Tumblr and wherever else they were using that same password.  Spokeswoman Katherine Barna offers a personal apology on behalf of Tumblr, commenting, "We immediately released an update that repairs the issue and are notifying affected users. We obviously take these incidents very seriously and deeply regret this error."

This is not the first major security crisis for Tumblr, who back in Dec. '12 had 8,000+ accounts hacked into.

Tumblr's acquisition by Yahoo! wrapped up in late June after a May bid.  Yahoo! reportedly payed around $1.1B USD for the popular site -- a nice payday for the founders and backing venture capitalists alike.  Some, however, have argued that Yahoo! overpaid for what Tumblr is worth in ad revenue.

Sources: Tumblr, CNN

“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith

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