Some sources indicate that Automattic acquired TUMBLR for less than 3 million USD, which is much lower than the 1.1 billion USD that Yahoo had spent in the year 2013.
According to the Wall Street Journal, Verizon Network has reached an agreement to sell the TUMBLR platform for Automattic (the owner of WordPress). The value and terms of this transaction are not disclosed.
Some of the sources from Axios said Automattic bought Tumblr for less than 3 million USD. This number is much lower than US $1.1 billion, which Yahoo paid for this social network in 2013. In addition, Automattic will receive 200 employees from TUMBLR as part of the agreement with Verizon.
“Tumblr is the place that creates many movements and has long become the home of the creative people. We are proud of what this platform has done and is happy to find the perfect partner like Automattic. This unit has enough expertise to grow and make TUMBLR more enjoyable, “said Guru Gowrappan, CEO of Verizon Media.
TUMBLR was founded by David Karp in 2007 and quickly became popular when blogging is trending on the Internet. In 2013, Yahoo acquired TUMBLR for $1.1 billion. However, after 3 years of operating, Yahoo has caused the value of the platform to decrease 230 million.
In recent years, TUMBLR has increasingly lost its position. Founder David Karp also left in 2017 when Tumblr was acquired by Verizon in the purchase of Yahoo.