Verizon is selling unprofitable Tumblr to the owner of WordPress for a paltry amount

Share to friends

Verizon is lastly ‘offloading its unprofitable’ running a blog website Tumblr to WordPress owner Automattic Inc, the firm introduced on Monday.

Verizon had reportedly been trying for a purchaser the previous three months as half of ongoing restructuring of its media companies which incorporates HuffPost, AOL, and TechCrunch, amongst others.

Verizon, previously generally known as Oath Inc, first acquired Tumblr in 2017 after it bought Yahoo. According to Axios, the guardian firm of publishing website WordPress, Automattic, has finalized the take care of Verizon, paying them lower than $10 million for Tumblr –  a ridiculous drop in worth from the $1.1 billion Yahoo bought it in 2013.

READ ALSO  Woman sues American Airlines claiming she was groped while sleeping during flight to Paris

“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 mentioned in a assertion. “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.”

As half of the buy take care of Verizon, Automattic will tackle 200 Tumblr staff. Tumblr at the moment has 475 million blogs on its service.

This deal marks the newest change of possession for Tumblr, a running a blog platform that after ranked amongst the net’s hottest properties. Launched in 2017 by David Karp, Tumblr shortly grew to become common amongst customers, together with varied artists and writers, for its area of interest tradition and easy-to-use companies.

READ ALSO  Apple offers $1.5 million reward for anyone who can hack their new iPhone

The Chief Executive Officer of Automaticc, Matt Mullenweg, issued a assertion on Monday stating that Tumblr is iconic” model identified for serving to folks share concepts, tradition and experiences.

But the paltry sale value clearly exhibits the extent which Tumblr has fallen from its heyday.

After three months of looking for a purchaser, Verizon Media CEO Guru Gowrappan described the Tumblr sale as the “culmination of a thoughtful, thorough and strategic process.”