Verizon Communications Inc. has agreed to sell Tumblr Inc. to WordPress owner Automattic Inc. for an undisclosed amount.
Automattic is taking on 200 employees as part of the deal. Tumblr, a social media network that is home to 475 million blogs, was reportedly bought by Automattic for less than $20 million, while another source puts it below $10 million, according to Axios.
The amount is a drop in value over $1.1 billion price that Yahoo, now called Altaba Inc., reportedly paid when it purchased Tumblr in 2013.
Verizon, which acquired Tumblr in 2017 as part of its purchase of Yahoo's operating business, started to explore a sale of the blogging website early this year to improve Verizon Media Group, formerly known as Oath Inc. In 2018, Oath reported lower than expected revenues and earnings due to increased competitive and market pressures.