Published: Wed, August 14, 2019
Markets | By Erika Turner

Verizon announces sale of Tumblr to Automattic, the owner of WordPress

Verizon announces sale of Tumblr to Automattic, the owner of WordPress

In addition to Tumblr, Automattic also owns Longreads, the comment filtering service Akismet and Gravatar, a service that allows users to have the same avatar across different websites.

The front-end user experience on Tumblr will evolve on its own path but could adopt some standardized technology from Open Source WordPress, the Journal reported.

Verizon is selling its personal blogging social network Tumblr to Automattic Inc, the owner of online publishing tool WordPress.

In the aftermath of the announcement late a year ago, even adult entertainment site Pornhub expressed interest in scooping up the site in hopes to keep things afloat.

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This will allow subscribers to enjoy a new film in their home on the same as the movie is being released in theatres. The connectivity and cloud infrastructure for budding startups will be free, Ambani said, from January 1, 2020.

The porn-ban went into effect on December 17th, when the site began using algorithms to flag and delete any such content. When Verizon purchased Tumblr in 2017, the company introduced an adult content ban on Tumblr, leading to a huge backlash from users.

Despite the price, Automattic CEO Matt Mullenweg told the Journal Tumblr is the company's largest-ever acquisition in terms of price and headcount. It has been so successful already, and we want to keep that going.

'Today's announcement is the culmination of a thoughtful, thorough and strategic process, ' added Verizon Media CEO Guru Gowrappan. "We are proud of what the team has accomplished and are happy to have found the ideal partner in Automattic, whose expertise and track record will unlock new and exciting possibilities for Tumblr and its users", Verizon Media CEO Guru Gowrappan said in a statement.

The amount of money involved with the sale is not known for sure, but reports suggest that Tumblr is being sold at something of a loss. (Axios business editor Dan Primack heard it was actually just $3 million.) That would mean that Tumblr is worth less than one percent of the $1.1 billion Yahoo bought it for six years ago - but as Axios says, that purchase price was shocking even then, given that Tumblr was only making about $13 million a year in revenue at that point.

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