Automatic, the company that owns WordPress has acquired Tumblr, announced Verizon. According to WSJ, the deal was done at much less amount than expected. Though once it was acquired by Yahoo for $1.1 billion and now sources say it was sold for less than $3 million.
Verizon had meetings with different companies regarding the sale of Tumblr and finally, it came to a final decision with Automattic. According to the deal, 200 staffers of Tumblr will be given to Automattic. Reports also suggest that the sale price of Tumblr is not material for Verizon.
In 2013, Yahoo acquires Tumblr in $1.1 billion and a few years later in 2017, Verizon owned Yahoo and it was put under the Oath subsidiary of Verizon.
The company is selling Tumblr as it is trying to focus more on its media group that is struggling hard. Verizon’s media group has TechCrunch, Engadget, Huffing Post, and other agencies under its banner.
Verizon Media Group managed to generate $1.8 billion revenue in Q2 of 2018, which was 2.9 percent less than year-over-year. Therefore, it decided to lay its focus more on the news, sports, entertainment and finance products.
App Store removed Tumblr after which it decided to remove all the adult content on the site. After getting hold of it, Automattic plans to continue with the same policies.
The CEO of Automattic, Matt Mullenweg said he is using Tumblr from a very long time and thinks it, in a way, compliments WordPress. He considers Tumblr a fun and entertaining platform and wants to continue as it is.
Tumblr and Automattic executives are finding ways in which both the Tumblr and Wordpress.com can share their functionalities however, no immediate changes are yet planned.
Credit: NurPhoto via Getty Images
Also read: 10 Most-hated YouTube videos of all time
Verizon had meetings with different companies regarding the sale of Tumblr and finally, it came to a final decision with Automattic. According to the deal, 200 staffers of Tumblr will be given to Automattic. Reports also suggest that the sale price of Tumblr is not material for Verizon.
In 2013, Yahoo acquires Tumblr in $1.1 billion and a few years later in 2017, Verizon owned Yahoo and it was put under the Oath subsidiary of Verizon.
The company is selling Tumblr as it is trying to focus more on its media group that is struggling hard. Verizon’s media group has TechCrunch, Engadget, Huffing Post, and other agencies under its banner.
Verizon Media Group managed to generate $1.8 billion revenue in Q2 of 2018, which was 2.9 percent less than year-over-year. Therefore, it decided to lay its focus more on the news, sports, entertainment and finance products.
App Store removed Tumblr after which it decided to remove all the adult content on the site. After getting hold of it, Automattic plans to continue with the same policies.
The CEO of Automattic, Matt Mullenweg said he is using Tumblr from a very long time and thinks it, in a way, compliments WordPress. He considers Tumblr a fun and entertaining platform and wants to continue as it is.
Tumblr and Automattic executives are finding ways in which both the Tumblr and Wordpress.com can share their functionalities however, no immediate changes are yet planned.
Credit: NurPhoto via Getty Images
Also read: 10 Most-hated YouTube videos of all time
