Verizon, America’s second largest telecom operator, will sell its Tumblr blog service. WordPress owner Automattic will buy the blog service.
Both companies have issued press releases, but none of them have indicated the amount of the transaction.
Verizon got Tumblr after acquiring Yahoo in 2017. Then the operator planned to create a business in the field of digital media and advertising. Verizon has started the active sale of Tumblr this year.
Transactions regarding the sale of the service were discussed with numerous potential buyers. According to Dow Jones sources, the price in negotiations has never been the most significant factor.
In 2013, when Yahoo acquired the Tumblr service, as one of the most developing startups, its price was $ 1.1 billion. Despite great prospects, it did not bring handsome profits. By 2016, the price of Tumblr had decreased to $ 230 million.
In the reporting for the second quarter of this year, Verizon revenue has decreased by almost 3%. In monetary terms, it has amounted to $ 1.8 billion. Representatives of the company report that they continue to focus on areas such as news, finance, sports, entertainment and email applications.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group