verizon sells tumblr to wordpress' parent company, automattic


  • verizon is selling tumblr to automattic, the company behind the blogging tool wordpress. while the size of the deal has not been publicly announced it's estimated at less than $3 million.

  • automattic ceo, matt mullenweg, sees tumblr as a companion to wordpress and "just fun."

  • this is automattic's largest acquisition both in terms of cost and sheer staff count at 200 employees.

  • yahoo bought the site in 2013 for $1.1 billion, but never really found a way to compete with the explosive growth of social networks like instagram. yahoo would eventually write off about $230 million of the site's value in 2016, and things didn't improve when verizon bought yahoo.

  • its user base is still large with 475.1 million blogs, but lost a significant portion of its user base by doing a piss poor job of banning porn and other "adult content" which will not be reversed upon completion of the sale.


source

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