Tumblr was bought for the same price as a modest family home in San Francisco.

Yesterday, Automattic, the creator of WordPress, announced it had acquired Tumblr for “less than $3 million” from its previous owner, Yahoo. It’s an inauspicious fall from grace for the site, which was previously sold to the search giant for $1.1 billion.

Why did Yahoo sell one of its prized possessions for a mere 0.27 percent of its original purchase price?

It’s a question that’ll puzzle many, as unlike other faded social platforms, Tumblr still has a die-hard userbase, and continues to pull in a respectable amount of traffic. I’d postulate that Tumblr was simply too troublesome to monetize and moderate, and that’s why Yahoo pulled the plug.


By Matthew Hughes.
Full story at The Next Web.