Tumblr Sells for Just $3M After Yahoo Bought it for $1.1 Billion in 2013

US-based photo blogging platform Tumblr has been sold by parent company Verizon for a fraction of its 2013 sale price, according to sources, as reported by Axios yesterday.

The blogging site, which allows users to tell stories and share pictures in an easy-to-use social media/blogging fusion format, was launched in 2007 in New York by entrepreneur David Karp. It enjoyed a huge amount of success in its earlier years, too, especially amongst artists and creatives, for its easy-to-use format and shareability. It became so popular, in fact, that Yahoo snapped it up for a cool USD$1.1 billion back in 2013. Verizon then acquired Yahoo in 2017, and with it, Tumblr.

But Tumblr has suffered a slight dip in its popularity of late, perhaps fuelled by a recent decision to start censoring content, something that ruffled feathers amongst many creatives who used the platform to share their artistic nude photography.

Verizon’s specific reasoning for the sale to Automattic, the same company which owns blogging site WordPress, is unclear, but what is known is just how much of a discount Automattic was handed–reportedly, the company paid under USD$20 million for Tumblr (rumoured at around USD$3 million), which represents less the two per cent of the original price paid for it by Yahoo just six years ago.

200 of Tumblr’s employees will be taken on by Automattic as part of the deal.