Verizon has agreed to sell the community blogging site Tumblr to Automattic, the parent company of website building company WordPress, according to Business Insider.
The two companies announced the deal on Monday. While financial terms for the deal were not announced, Axios reported that the price was probably around $20 million. If this is the case, Tumblr will be sold for a fraction of the price of what it was once worth.
In 2013, Tumblr was sold to Yahoo for $1.1 billion. Automattic will take on the 200 current Tumblr employees as part of the deal. Tumblr was started in 2007 by web entrepreneur David Karp. It was once one of the most popular sites on the web due to its easy-to-use blogging and group chat services.
Tumblr has 475 million blogs on its service and represents an “iconic” brand that helps people share ideas, cultures, and experiences, according to Automattic CEO Matt Mullenweg.
While the sale price on Tumblr may be a steal, the challenges of reviving a falling internet service is a difficult task for Automattic.