Verizon is selling blogging site Tumblr to the owner of WordPress for a 'nominal' amount of money (VZ)

david karp tumblr


  • The Wall Street Journal reported
    Monday that Verizon is
    planning to sell blogging site Tumblr to Automattic, the parent
    company of other blogging site WordPress.
  • WSJ cited the deal as a “nominal amount” compared to
    its previous $1 billion purchase price.
  • Automattic will take on 200 Tumblr employees, the
    report stated. The company already oversees Longreads, a long-form
    publishing site, in addition to WordPress.
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    Business Insider’s homepage for more stories.

Automattic, the parent company of publishing site WordPress, is
planning to purchase blogging site Tumblr from Verizon for an
undisclosed amount,
according to a Wall Street Journal
report Monday.

The price of the acquisition is unclear, but the report stated
it was a “nominal amount” compared to the $1 billion price that
Tumblr fetched when Yahoo acquired
it in 2013.

Automattic will take on 200 Tumblr employees as part of its deal
with Verizon.

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The deal marks the latest change of ownership for Tumblr, a
social-media infused blogging platform that at one time ranked
among the web’s marquee properties. Launched in New York in 2007 by
enterpreneur David Karp, Tumblr quickly became
popular among artists and writers
for its niche culture and
easy-to-use services. 

Automattic CEO Matt Mullenweg told WSJ that he intends to keep
the ban in place, according to the report. Automattic oversees
several publishing companies in addition to WordPress, including
long-form site Longreads, a comment filtering and tracking service,
and an avatar generator.

Tumblr was acquired in 2013 by struggling internet portal Yahoo,
which hoped Tumblr’s younger users could revive its fortunes. But
Yahoo’s $1.1 billion purchase price was deemed excessive even at
the time, given that Tumblr barely generated any revenue. And as
Tumblr’s popularity faded in the folowing years, as larger sites
from Reddit to Facebook proved more adept at attract and retaining
traffic, Yahoo was forced to write off hundreds of millions of
dollars for its acquistion. 

Verizon inherited the popular blogging site through its
acquisition of Yahoo in 2017. Many devoted Tumblr users turned to
the site for its lax rules around hosting adult content and were

outraged over Verizon’s decision to ban all adult content from the
site in 2018

Verizon, formerly known as Oath, has been
reportedly shopping around for a buyer for Tumblr since May
as
part of the ongoing restructuring of the media portion of its
business that includes HuffPost, AOL, and TechCrunch, among
others.


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Verizon is selling blogging site Tumblr to the owner of WordPress for a 'nominal' amount of money (VZ)