Tumblr Sold to WordPress Owner Automattic
Verizon has just sold microblogging platform, Tumblr to WordPress owner Automattic Inc. for what is reported to be a shockingly low sum following the company’s 1.1 billion acquisition in 2017. It was first reported by The Wall Street Journal that Tumblr was acquired for an undisclosed amount, however, the sum was later revealed to be well below $20 million. Dan Primack, business editor at Axios, confirmed that the acquisition price was actually less than $3 million. Verizon is currently in the process of revamping its media group, which has struggled to meet revenue targets in recent years. The company is increasingly focused on subscriptions and original content. The Tumblr acquisition is the largest ever in terms of price and head count for Automattic. As part of the acquisition, Automattic will take on Tumblr’s 200 staffers and no jobs will be lost. [su_quote cite=”Guru Gowrappan, Verizon Media CEO “] Tumblr is a marquee brand that has started movements, allowed for true identities to blossom and become home to many creative communities and fandoms, [/su_quote]
What’s Next for Tumblr and WordPress
Going forward, Automattic executives plan to find ways that WordPress.com and Tumblr can share services and functionality. As the world’s leading CMS platform, adding more functionality and features to WordPress’ offerings should benefit marketers charged with managing WordPress websites. [su_quote cite=”Guru Gowrappan, Verizon Media CEO “] We are proud of what the team has accomplished and are happy to have found the perfect partner in Automattic, whose expertise and track record will unlock new and exciting possibilities for Tumblr and its users, [/su_quote] Automattic will maintain Tumblr’s existing policy banning adult content, a decision made last year by Verizon communications. In the meantime, it sounds as though there will be no immediate changes to either service.