Once $1.1bn, Tumblr sells for 'a mere $3m'
Tumblr, once one of the powerhouse platforms for online blogging and social media, has been sold for a reported $3m (€2.7m).
The platform that Yahoo bought for $1.1bn in 2013 has been offloaded by Verizon Communications to Automattic, which owns the blogging platform Wordpress.
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Terms of the transaction were not revealed, according to Verizon. But the online news site Axios reported that the purchase price was $3m, a 99.8pc discount on its acquisition price six years ago. As well as Wordpress, Automattic owns a group of publishing sites, including Longreads, and sees Tumblr as a good fit.
The 'Wall Street Journal' previously reported on the sale, saying that Automattic would take on about 200 staffers.
For Verizon, the sale marks a further retrenchment. It has been cutting staff at its online media division, which was previously called Oath.
Tumblr has been criticised previously for hosting adult content that minors can access too easily, hurting its growth prospects.