Verizon to sell Tumblr to WordPress parent firm for undisclosed amount
BusinessToday.In August 13, 2019
Verizon has reportedly agreed to sell its blogging platform Tumblr to the parent company of online publishing tool WordPress. Tumblr will act as a complementary site to WordPress after the acquisition.
Automattic Inc, the parent company of WordPress, will buy Tumblr and take on its 200 staff members for an undisclosed amount, Wall Street Journal reported. Verizon, the current owner of Tumblr, had been searching a buyer for the social media platform since earlier this year, the daily reported.
Although the amount for the acquisition deal has not been disclosed yet, it is expected to be far short of $1 billion that Tumblr fetched when it was acquired by Yahoo. Reports suggest that Automattic has bought Tumblr for less than $3 million.
Yahoo had bought Tumblr for $1.1 billion in 2013. Verizon got hold of social media platform later when it acquired Yahoo in 2017. Tumblr was once considered a major social media player, but was shadowed by the rise of Facebook, Twitter and Reddit.
Verizon, on the other hand, has been trying to revamp its media group which has struggled to meet revenue targets in recent years.