Automattic is reportedly buying Tumblr for less than $3 million, a massive drop in value from the amount of $1.1 billion that Yahoo paid for it in 2013.

Verizon agrees to sell Tumblr to WordPress owner Automattic Inc
Atom Tumblr Wednesday, August 14, 2019 - 10:03
Written by  S. Mahadevan

Automattic Inc, the company that owns WordPress, will now be the new owner of social media cum blogging site Tumblr. Tumblr was first acquired by Yahoo in 2013; then Yahoo itself was bought over by Verizon and now Verizon has passed it on to Automattic, as per a Verge report. Passed it on could just be the right expression since it is learnt that the actual price paid to Verizon for this deal is less than $3 million. Yahoo had paid $1.1 billion in 2013.

Verizon’s decision last year to ban adult content on Tumblr virtually sealed its fate as a popular online destination. The moment Verizon stopped such contents, there was a large-scale exodus from the Tumblr platform. Automattic doesn’t plan on reversing these decisions and has said that Tumblr will act as a complementary site to WordPress.

The Tumblr site is still visited by many and the new owner may leverage the mobile interface developed by Tumblr to offer some of the WordPress functionality on the mobile platform and integrate the two. The blogs that appear on both Tumblr and WordPress will continue creating some synergy in what the customers look for.

Tumblr was founded in the year 2007 by David Karp and in 2017 when Verizon took over Yahoo and Tumblr also became a part of the Verizon Group, Karp decided to quit, without assigning any specific reason for his parting company. He had expressed his hope that Tumblr had a great future. Almost on similar lines, now, Verizon is parting with the blogging site and says it hopes Tumblr has a great future under Automattic.

Other sites which the youth appear to patronize include YouTube, Snapchat and Instagram though all may not be lost for Tumblr either.

“Tumblr is a marquee brand that has started movements, allowed for true identities to blossom and become home to many creative communities and fandoms. 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,” The Verge quotes Verizon Media CEO Guru Gowrappan as saying in a statement.

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