Automattic Inc., proprietor of WordPress.com, has acquired Tumblr for what’s reported to be very low sum.
The Wall Street Journal reported that Tumblr was acquired for an “undisclosed sum,” nevertheless, it was quickly revealed the sum was “well below” $10 million.
Dan Primack, enterprise editor at Axios, broke the information concerning the acquisition worth. He tweeted an replace after publishing the story, saying the sum is definitely beneath $three million.
three/ Story up to date: Price lower than $three million.
— Dan Primack (@danprimack) August 12, 2019
To put this in perspective, Yahoo acquired Tumblr for $1.1 billion in 2013. Yahoo later wrote down Tumblr’s worth by $230 million in 2016 after it didn’t generate vital income.
In 2017, Verizon gained possession of Tumblr by way of its acquisition of Yahoo. Now, Verizon is reportedly promoting Tumblr for a fraction of what it was valued at 5 years in the past.
Despite what is taken into account to be a low sum, the acquisition of Tumblr is largest ever for Automattic by way of worth and head rely.
As a part of the acquisition, Automattic will tackle Tumblr’s 200 staffers, so nobody shall be dropping their job.
Another factor that can keep in place is Tumblr’s controversial porn ban. Matt Mullenweg, chief government of Automattic, tells WSJ: “We’re not going to change any of that.”
Going ahead, Mullenweg says that executives will look for methods to share companies and performance between WordPress.com and Tumblr.
In the meantime it sounds as if there shall be no instant adjustments to both service.