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The Rise and Fall of Tumblr: A Look at Its Acquisition by Automattic

By Gina Milani

September 4, 2019

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blogging image - Rise and Fall of Tumblr

Let’s take a look at the rise and fall of Tumblr.

Yahoo’s Acquisition of Tumblr
The rise and fall of Tumbler.  In 2013, Yahoo acquired Tumblr for a staggering $1.1 billion, hoping to capitalize on the platform’s popularity. However, when Verizon bought Yahoo in 2016, it became clear that Tumblr didn’t align with Verizon’s long-term vision for Yahoo. Issues with user-generated content, including a child-porn problem, raised safety concerns that further complicated Tumblr’s position, contributing to the rise and fall of Tumblr.

Automattic’s Acquisition: A Shift in Ownership

Acquisitions are common in the tools marketplace, often driven by consolidation. Automattic, the company behind WordPress, reportedly paid around $3 million for Tumblr, a significant drop from its original $1.1 billion valuation. Axios reported this figure, highlighting the platform’s dramatic decrease in value, further underscoring the rise and fall of Tumblr.

The Decline of Tumblr’s Value

Once a trendy social network, Tumblr was known for its nonconformist spirit and content that mainstream networks often shunned, including adult content. While this made Tumblr less attractive to advertisers, it still held a coveted youthful demographic, which initially made it appealing to Yahoo.

However, after Verizon acquired Yahoo in 2017 and banned adult content from Tumblr in 2018, the platform’s appeal waned. By May, Pornhub was the only bidder to publicly express interest.

Ultimately, Automattic acquired Tumblr, marking it as the last major company actively developing, promoting, and maintaining a blogging platform and software—a critical point in the rise and fall of Tumblr.

The Future of Blogging Platforms

While Axios suggests that Automattic is the last major company supporting blogging platforms, PRToolFinder identifies three other platforms still in operation and regularly updated, offering alternatives for those looking to blog:

  • LiveJournal
  • BlogDrive
  • MovableType
The Rise and Fall of Tumblr — Tumblr’s New Chapter

Automattic has stated that it shares Tumblr’s vision of building passionate communities around shared interests. And democratizing publishing, especially for underrepresented voices. Despite the rise and fall of Tumbler, with Automattic at the helm, Tumblr may find a new lease on life as part of the WordPress family, signaling a new phase after the rise and fall of Tumblr.

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