Automattic, the company behind WordPress, just bought Tumblr from Verizon for less than US$3 million. Verizon had acquired the site from Yahoo for US$1.1 billion.
As part of the deal, Automattic will gain 200 staffers from Tumblr. Verizon is said to have discussed a sale of Tumblr with a handful of different companies but ultimately landed on Automattic. “The sale price isn’t material to Verizon,” today’s report says citing “people familiar with the matter.”
Before you get excited, know that the porn ban will remain in place.
Check It Out: Automattic Buys Tumblr for Pennies on the Dollar
This whole Tumblr deal was a really bad business deal for Verizon from day 1. Whomever came up with that idea must really be kicking themselves for even thinking of it, if they even still have a job.
$1,100,000,000 -> $3,000,000 plus all the trouble involved in between, that cost even more money. The one who got the best deal out of this was Yahoo.
“Before you get excited, know that the porn ban will remain in place.”
Which is why the sale price was so low. No porn = no profit. 🙂