Automattic Inc., proprietor of WordPress.com, has received Tumblr for what is said to be very low sum.
The Wall Street Journal reported that Tumblr was obtained for an “undisclosed sum,” then again, it used to be soon found out the sum was once “well underneath” $10 million.
Dan Primack, industry editor at Axios, broke the scoop concerning the acquisition worth. He tweeted an update after publishing the story, announcing the sum is definitely under $3 million.
3/ Tale up to date: Value less than $3 million.
— Dan Primack (@danprimack) August 12, 2019
To Position this in standpoint, Yahoo obtained Tumblr for $1.1 billion in 2013. Yahoo later wrote down Tumblr’s value through $230 million in 2016 after it failed to generate significant revenue.
In 2017, Verizon won possession of Tumblr through its acquisition of Yahoo. Now, Verizon is reportedly promoting Tumblr for a fragment of what it was valued at 5 years in the past.
Regardless Of what's regarded as to be a low sum, the acquisition of Tumblr is greatest ever for Automattic in terms of price and head count.
As part of the purchase, Automattic will take on Tumblr’s 2 HUNDRED staffers, so no one will likely be shedding their task.
Any Other factor to be able to stay in place is Tumblr’s arguable porn ban. Matt Mullenweg, chief executive of Automattic, tells WSJ: “We’re unlikely to change any of that.”
Going forward, Mullenweg says that executives will look for how you can percentage services and products and capability between WordPress.com and Tumblr.
Within The interim it sounds as though there will likely be no instant adjustments to either provider.
