Tumblr sells for less than $ 3 million to owner of WordPress | Business

O Tumblr was sold to Automattic, which owns the WordPress platform, for an undisclosed price; sources say the price was “below $ 3 million”. It was bought by Yahoo in 2013 for $ 1.1 billion, but ended up losing space to other social networks like Facebook and Instagram. The site has banned adult content since last year, and that policy should continue.

Tumblr

Matt Mullenweg, chief executive of Automattic, tells the Wall Street Journal that wants to maintain the ban on adult content on Tumblr. In December 2018, the social network took the controversial decision to ban NSFW photos and videos, losing more than 80 million visitors in the following months. The site had 381 million visitors in July this year.

Dan Primack, from Axios, says the acquisition price was less than US $ 3 million. This is Automattic’s biggest purchase in terms of value and number of employees; she will hire about 200 people from the Tumblr team. The idea is, in the future, to find ways to share your services and features with WordPress.

Tumblr was part of the American operator Verizon; according to WSJ, she had been looking for a buyer since the beginning of the year and was not concerned with the price – she just wanted to get rid of the platform.

Tumblr was bought by Yahoo for $ 1.1 billion

David Karp

Tumblr founder David Karp left the company in 2017

Founded in 2007, Tumblr operated independently until 2013, when it was acquired by Yahoo for $ 1.1 billion. At the time, the company said: “we promise not to ruin everything”. The promise was not kept, and the social network failed to grow as expected.

Yahoo revised the value of Tumblr downwards, making accounting adjustments totaling $ 712 million. The social network passed into the hands of Verizon in 2017, when the acquisition of Yahoo was finalized.

Verizon merged Yahoo with AOL to create Oath; they were purchased for a total of $ 8.8 billion. The operator wanted to create a digital media and advertising firm to compete with Google and Facebook, but failed; so it reduced the value of its two companies in $ 4.6 billion, through an accounting adjustment at the end of last year.

Tumblr was in the middle of that cake, and you can imagine that Verizon was interested in getting rid of it. Last year, the operator also divested Flickr, which has been part of Yahoo since 2005.

With information: Wall Street Journal, Axios.

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