David Karp, founder of the micro-blogging site Tumblr, opens the NASCAQ Exchange in new york.
Verizon is promoting Tumblr, the blogging social network that Yahoo bought for $1.1 billion, to the owner of WordPress for a small amount.
WordPress parent Automattic will obtain Tumblr along with its staff of about 200, according to The Wall Street Journal, which first reported the deal Monday and said that the cost “isn’t material to Verizon.” Representatives from Tumblr and Automattic affirmed the acquisition to CNBC.
Automattic CEO Matt Mullenweg — at a Tumblr article — said his company will attempt to “preserve the passion and sense of community that so many people around the world — and all over the web — have come to associate with Tumblr.”
The Tumblr bargain is Automattic’s biggest acquisition to date, a spokesman for the firm told CNBC.
“When the possibility to join forces became concrete, it felt like a once-in-a-generation opportunity to have two beloved platforms work alongside each other to build a better, more open, more inclusive — and, frankly, more fun web,” Mullenweg wrote. “I knew we had to do it.”
Tumblr, based in 2007 by David Karp, is a website that gained popularity by allowing people to publish sites at no cost. Verizon inherited Tumblr as a part of its 2017 acquisition of Yahoo, which bought Tumblr in 2013.
The marketplace has becoming increasingly crowded recently, with competitions such as Squarespace, Wix and Weebly (currently owned by Square) providing website templates for small companies and freelancers, and as Moderate became a favorite site for bloggers.