… Yahoo’s parent company Verizon finally admitted defeat in its long quest to monetise Tumblr, agreeing to sell the service for less than 2% of its original cost.
The US telecoms giant, which absorbed Yahoo in 2017 for $4.5bn, said it would sell Tumblr to Automattic, owner of the rival blogging service Wordpress. While it did not give a price, the US news website Axios put the transaction at “well below” $20m and possibly as low as $3m – barely more than the cost of a McDonald’s franchise. ….
It comes after Tumblr lost almost one third of its traffic following a controversial ban on pornography and erotica, which aimed to clean up the site’s image with advertisers and phone companies but which was deeply unpopular ….
Laurence Dodds, The Telegraph, 13 August 2019