Blogging website Tumblr is going to acquire by Automattic Inc., the owner of popular online-publishing tool WordPress.com.
Currently, Tumblr is owned by Verizon Communications Inc. the parent company of Yahoo. Verizon acquired Tumblr in 2013 for $1 billion.
As per the sources, the current acquisition price is just a $20 million, a big loss for Verizon.
Tumble was popular as a porn blog app between users. Once the hottest game in town now in the dust because a recent decision to ban porn from the platform has had a marked negative impact on Tumblr’s traffic.
According to the data, first-time users for Tumblr’s mobile app declined 33% year-over-year last quarter.
“Today’s announcement is the culmination of a thoughtful, thorough and strategic process,” said Verizon Media CEO Guru Gowrappan. “Tumblr is a marquee brand that has started movements, allowed for true identities to blossom and become home to many creative communities and fandoms. 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.”
“Tumblr is one of the Web’s most iconic brands,” said Automattic CEO Matt Mullenweg. “It is an essential venue to share new ideas, cultures and experiences, helping millions create and build communities around their shared interests. We are excited to add it to our lineup, which already includes WordPress.com, WooCommerce, Jetpack, Simplenote, Longreads, and more.”
Tumblr is a media network powered by a massive community of independent creators and home to 475 million blogs.
Verizon Media houses a trusted media ecosystem reaching nearly one billion consumers through its premium brands including Yahoo, HuffPost, TechCrunch and AOL, and best-in-class ad and media streaming platforms.