Technology

Tumblr sold for $1.1 billion

The owner of WordPress just bought the site

Tumblr Wordpress
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Tumblr sold for $1.1 billion, The owner of WordPress just bought the site, Verizon is Selling Tumblr to Parent Company of WordPress. 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 hottest properties.

The deal comes after Verizon purchased Tumblr from Yahoo in 2017. It’s rumored that the Verizon-Automattic deal was for less than $3 million, which is far below the $1.1 billion Yahoo paid for the once mighty Tumblr back in 2013.

Verizon paid $1.1 billion for Tumblr two years ago, but will receive a fraction of that amount from Auttomattic, the parent company of WordPress, The Wall Street Journal reported. Verizon officials said the sale price "isn't material."

To put this in perspective, Yahoo acquired Tumblr for $1.1 billion in 2013. Yahoo later wrote down Tumblr’s value by $230 million in 2016 after it failed to generate significant revenue.

That leaves the question of what Automattic will do with the site. It already produces the world’s biggest blogging platform, and also operates a highly profitable hosting platform that’s geared towards individual and enterprise users alike.

Automattic chief executive Matt Mullenweg told the Wall Street Journal that he has long been a Tumblr user and sees the site as complementary to WordPress. Automaticc CEO Matt Mullenweg said in a statement on Monday that Tumblr, which has 475 million blogs on its service, represents an "iconic" brand known for helping people share ideas, culture and experiences.

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