WordPress owner buys Tumblr from Verizon

Verizon has revealed it is selling social network
Tumblr
to Automattic Inc, the owner of
Wordpress
.

Terms of the deal were not disclosed, but reports say Tumblr has
been bought for far less from the $1.1 billion Yahoo paid for it
back in 2013.

Tumblr later became part of the Verizon stable after its
acquisition of Yahoo in 2017, with today’s sale marks a major drop
in value, with some reports putting the deal at as little as $3
million.

Tumblr sale

Automattic will doubtlessly see Tumblr as a key part in its bid
to strengthen its online operations. Although the site is unlikely
to be profitable in the short term, Tumblr still hosts over 450
million blogs, meaning it remains one of the web’s largest such
sites.

“Tumblr is a marquee brand that has started movements, allowed
for true identities to blossom and become home to many creative
communities and fandoms,” Verizon Media CEO Guru Gowrappan
said. 

“We are proud of what the team has accomplished and are happy
to have found the perfect partner in Automattic, whose expertise
and track record will unlock new and exciting possibilities for
Tumblr and its users.”

Verizon had been keen to sell on Tumblr for some time, but adult
site Pornhub had been the only declared bidder until Automattic
showed its interest. Ironically, Tumblr suffered a major backlash
last year after Verizon announced it would be
banning adult content
from the site, leading many users to
boycott the site.

Automattic says it has no plans to reverse this ban, and that
Tumblr will act as a “complementary” site to WordPress.

Automattic will take on Tumblr’s 200-odd employee workforce
under the deal. The company say it currently employs 940 staff
across 71 countries, with WooCommerce, Jetpack, Simplenote and
Longreads among its other entities.

Via
WSJ

Source: FS – All Tech News 2
WordPress owner buys Tumblr from Verizon