Sunday, 25 August 2019

Verizon sells off Tumblr for peanuts

By Chris Kelly, Total Telecom
Tuesday 13 August 19

Tumblr has seen its traffic levels fall after Verizon implemented a ban on explicit content on the micro-blogging site

US telco, Verizon, has sold off its short form blogging platform, Tumblr, for $3 million, according to reports in the press. The San Francisco based owner of Wordpress…

US telco, Verizon, has sold off its short form blogging platform, Tumblr, for $3 million, according to reports in the press.

The San Francisco based owner of Wordpress, Automattic, will acquire Tumblr for less than the cost of a two-bed apartment in Nob Hill.

Tumblr's devaluation has been shocking. Just six years ago, Yahoo paid a staggering $1.1 billion to acquire Tumblr. Verizon then acquired Tumblr when it bought Yahoo in 2017 for $4.4 billion.

Since then Tumblr has seen its traffic fall by around 35 per cent, after Verizon decided to ban explicit or adult content from the site. In just 6 years, Tumblr has seen its value shrink by 99.7 per cent.

Tumblr’s CEO, Jeff D’Onofrio, said that the deal would be beneficial for both companies, in a statement posted on Twitter.

“There is much more to do to make your experience a better one, and I’m super confident that we are in great hands with this news. Tumblr and Wordpress share common founding principles. The plane has landed on a friendly runway. Now it is time to freshen up the jets,” he said.

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