Verizon will sell the image-centric blogging website Tumblr to Automattic, owner of the blogging tools suite WordPress, according to the Wall Street Journal. The terms of the sale were not disclosed, but Axios reports the amount was “well below” $20 million.
That would be a staggering discount against the $1.1 billion paid for Tumblr by Yahoo in 2013 as part of an ambitious turnaround effort by Yahoo’s then-CEO Marissa Mayer. But Mayer’s turnaround foundered, and the Tumblr deal in particular was a flop. By early 2016, Yahoo had written down Tumblr’s value by $230 million, and by 2017, all of Yahoo was sold to Verizon for just $4.48 billion.
Tumblr is in some ways comparable to Instagram. Though it has text capabilities, it acts primarily as a way for users to post images, and includes social sharing features. But where Facebook turned Instagram into a giant in its own right since acquiring it for $1 billion in 2012, both Yahoo and later Verizon made moves that hampered Tumblr’s growth.
Source:: Fortune.com – Tech