The acquisition of Tumblr by Automattic is a significant event in the tech world, marking a strategic move by the company behind WordPress to integrate a popular social networking site.
In this article, we explore the history of Tumblr, its founders, and the reasons behind its acquisition by Automattic.
Tumblr is a microblogging and social networking website that allows users to post multimedia and other content to short-form blogs. Founded in 2007, Tumblr became known for its vibrant and eclectic user base, where individuals share everything from animated GIFs to personal blogs.
The platform's unique appeal lies in its mix of creativity and community, making it a popular choice among artists, writers, and young adults.
Tumblr was founded by David Karp in 2007. Karp, a high school dropout with a passion for technology and innovation, created Tumblr as a space for users to express themselves freely and creatively.
His vision quickly resonated with millions of users, establishing Tumblr as a leading platform for personal expression and community engagement.
Automattic, the parent company of WordPress, acquired Tumblr from Verizon in August 2019. Verizon had previously acquired Tumblr through its purchase of Yahoo in 2017.
The deal with Automattic was reportedly valued at less than $3 million, a stark contrast to the $1.1 billion Yahoo paid for it in 2013. This acquisition marks Automattic's largest acquisition in terms of both price and headcount, as it brought over 200 Tumblr employees into the company.
Automattic's acquisition of Tumblr was driven by several strategic reasons. Firstly, Tumblr's strong engagement metrics, with more daily active users than WordPress.com has monthly active users, presented a significant opportunity for growth.
Additionally, Automattic saw the potential for integrating Tumblr's creative community with WordPress’s robust platform, aiming to foster innovation and enhance the user experience on both platforms. Automattic CEO Matt Mullenweg has expressed his long-time appreciation for Tumblr, highlighting its fun and vibrant culture, which he plans to maintain and nurture.
The exact amount paid by Automattic to acquire Tumblr was not disclosed, but it is widely reported to be less than $3 million. This valuation is significantly lower than the $1.1 billion Yahoo paid for Tumblr in 2013, reflecting the challenges Tumblr faced in maintaining its user base and monetization strategies under previous ownerships.
