Verizon Wireless bought Tumblr from Yahoo, it was originally sold for $1.1 billion and now Verizon are selling it for a lot less to Wordpress owner Automattic.
There are no details on how much Tumblr was sold for but it is said to be less than $20 million, Automattic will take over the company’s 200 staff.
The Rise and Fall of Tumblr’s Valuation
Tumblr, once a thriving social media platform, was acquired by Yahoo in 2013 for a staggering $1.1 billion. At its peak, Tumblr was a hub for creative expression, attracting millions of users who shared multimedia content ranging from art and photography to memes and personal blogs. However, the platform’s popularity began to wane due to various factors, including competition from other social media giants like Instagram and Twitter, as well as controversial policy changes, such as the ban on adult content in 2018. These changes led to a significant drop in user engagement and ultimately affected Tumblr’s market value.
Verizon acquired Yahoo in 2017, and with it, Tumblr. Despite efforts to revitalize the platform, Verizon struggled to restore its former glory. The decision to sell Tumblr for less than $20 million marks a dramatic decline in its valuation, reflecting the challenges the platform faced in maintaining its user base and relevance in a rapidly evolving digital landscape.
Automattic’s Vision for Tumblr
Automattic, the parent company of WordPress, sees potential in Tumblr’s unique community and creative spirit. Automattic CEO Matt Mullenweg expressed enthusiasm about the acquisition, stating, “Tumblr is one of the Web’s most iconic brands. It is an essential venue to share new ideas, cultures and experiences, helping millions create and build communities around their shared interests. We are excited to add it to our lineup, which already includes WordPress.com, WooCommerce, Jetpack, Simplenote, Longreads, and more.”
While specific plans for Tumblr’s future under Automattic’s ownership remain unclear, there are several possibilities for how the platform could evolve. Automattic’s expertise in content management and community building could help revitalize Tumblr by integrating new features and improving user experience. For instance, leveraging WordPress’s robust blogging tools could enhance Tumblr’s functionality, making it easier for users to create and share content.
Additionally, Automattic’s commitment to open-source principles and user privacy could resonate with Tumblr’s community, fostering a more inclusive and user-friendly environment. The acquisition also opens up opportunities for cross-platform integration, allowing users to seamlessly share content between Tumblr and other Automattic products like WordPress and WooCommerce.
The Future of Social Media Platforms
The sale of Tumblr to Automattic highlights the dynamic nature of the social media landscape. Platforms that once dominated the market can quickly lose relevance if they fail to adapt to changing user preferences and technological advancements. However, it also demonstrates that there is still value in niche communities and platforms that cater to specific interests and creative expression.
As Automattic takes the reins, the future of Tumblr will depend on its ability to innovate and meet the needs of its diverse user base. Whether through new features, improved user experience, or strategic partnerships, the goal will be to reignite the passion that once made Tumblr a beloved platform for millions.
It is not clear as yet exactly what Automattic has planned for Tumblr, as soon as we get some more details, we will let you guys know.
Source Verizon, Axios, Techmeme
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