US telecommunications company Verizon sold its Tumblr property to Automattic, the parent company of WordPress, according to a report by the Wall Street Journal (WSJ). Sales of social media platforms came almost two years after Verizon bought them from Yahoo in 2017.
The price Automattic pays for microblogging sites is also quite surprising; the company only paid less than US $ 3 million (~ RM12.58 million) for the site. This is a surprising decrease in value, especially when you remember that Yahoo originally paid $ 1.1 billion (~ RM4.61 billion) for that in 2013.
What Automattic wants to do with their new acquisition remains a mystery, but the most pressing and clear question is why WordPress owners even buy it. While Tumblr was once a popular outlet for blogging and social media, this platform loses its luster over time to other social media. Included Instagram, Snapchat and YouTube.
However, Tumblr experienced other issues as recently as last year, when it struggled to monitor and control the distribution of adult content and pornography on the platform. The Indonesian government has banned the use of the platform. Then, in December last year, Tumblr announced that it would ban all pornographic content from being posted on its platform.