Verizon Communications Inc (NYSE:VZ) has finally agreed upon the sale of its microblogging and social networking website Tumblr. The owner of WordPress.com Automattic Inc is pleased to acquire Tumblr. The company seeks to implement changes to enable users post their content effectively on time.
The business deal
Contrary to expectations, the two decided to keep the terms of the deal private. However, some sources disclosed some important details. For instance, the sale will be below $20 millionAuto. Upon the close of the deal, Automattic will be employing 200 of the Verizon Staff.
Automattic will have to adhere to Verizon’s stand regarding porn. The company had earlier imposed a ban on porn on the platform and wants the buying company to uphold the same even after purchase. Talks continue, but to this moment no one can tell when the deal will come to a close. The two business gurus in a statement yesterday outlined that the business deal was tied to some customary closing conditions.
The stand of the leaders of the two companies
Automattic CEO, Matt Mullenweg, thinks highly about Tumblr, and in a statement, he termed it one of the iconic brands on the web. Mullenweg went a step further to describe it as an important venue that allows users share a lot. They usually share ideas, experiences, and cultures. All these are important ingredients towards the creation as well as the establishment of large communities with shared interests.
The leader expressed his excitement outlining that it was vital for them to add to their business line. According to him, it was an incredible addition to a lineup that comprised of Longreads, WordPress.com, Simplenote, WooCommerce, and Jetpack.
Verizon’s CEO, Gowrappan, has termed Automattic the best partner to take up Tumblr. Gowrappan highlighted Automattic’s expertise and track record saying they would surely open up new opportunities and possibilities for users and Tumblr in its entirety.
Verizon admits that its entry into the media business has been marred by numerous challenges. One of them has been the laying off of employees from time to time.
