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Verizon Communications, the second largest telecom operator in the United States, has agreed to sell its Tumblr blog service to Automattic, which owns WordPress, which runs more than 30% of all sites in the world.
At the same time, the cost of the transaction was not disclosed in the company's press releases.
Verizon became the owner of Tumblr thanks to the acquisition of Yahoo in 2017 as part of a business plan specializing in digital media and advertising. The company began looking for buyers for Tumblr earlier this year.
Verizon was discussing a potential deal with multiple stakeholders, with sources quoted by the Dow Jones noting that the selling price was not a significant factor for the company.
Yahoo paid Tumblr about $ 1.1 billion in 2013, when the service was one of the fastest growing online startups. Meanwhile, Tumblr could not bring Yahoo significant revenue, as a result of which in 2016 the cost of the service fell to $ 230 million.
Verizon Media Group revenue for the second quarter decreased by 2.9% in annual terms and amounted to $ 1.8 billion. During a conference call with analysts, company representatives said that Verizon continued to focus on news, finance, sports, entertainment and email applications.
Recall that previously the tech giants Apple and Intel announced a deal for a billion dollars. Now the agreement between the companies must be approved by regulatory authorities.