Verizon sells Tumblr website to owner

Verizon Communications is set to sell its blogging website Tumblr to Automattic, the owner of online-publishing tool
Verizon 5G testVerizon did not disclose the terms of the deal. The Wall Street Journal reported that Verizon will be selling the blogging social networking website for a small amount. Tumblr has nearly 200 employees.

Verizon Media revenues fell 2.9 percent to $1.8 billion in the second quarter of 2019 as against 7.2 percent drop in the first quarter of 2019.

The strategy of Verizon, the #1 telecom operator, is to divest non-profitable business units and focus on the mobile operator’s wireless and wireline businesses targeting consumers and enterprises.

Verizon Media Group, formerly called Oath, is the digital media business that owns more than 50 brands, including HuffPost, TechCrunch and Tumblr.

Tumblr was acquired by Yahoo for more than $1.1 billion in 2013 and Verizon acquired it as part of its deal for Yahoo in 2015. Verizon purchased Yahoo for $4.48 billion and closed the deal in June 2017.

Main investors of the San Francisco, CA-based Automattic include Insight Venture Partners, Tiger Global Management, True Ventures, Polaris Venture Partners, Radar Partners, and New York Times Company.

Verizon reported operating revenues of $32.1 billion, down 0.4 percent, in the second quarter of 2019. Verizon posted operating income margin of 24.5 percent in Q2 2019, compared with 20.5 percent in Q2 2018.