Tumblr, which has long been in competition with Instagram and Twitter, is a far cry from its old days. The emergence of Twitter-like platforms and Instagram’s announcement of apps like Threads have put Tumblr on the back burner. The company’s CEO, Matt Mullenweg, said it was losing $30 million a year.
Tumblr’s future in jeopardy as CEO admits financial struggles
In an interview, Tumblr CEO Matt Mullenweg admitted that they have been unable to stop the platform’s decline. He said that the social media tool’s revenue has been declining for several years and that the company is now spending more money than it is making.
There are several reasons for this decline. The rise of social media platforms such as Twitter, the banning of obscene content on the platform and Tumblr’s inability to attract new users are all factors that are pushing the company towards bankruptcy.
Acquired by Yahoo in 2013 for $1.1 billion, Tumblr fell far short of its goals. It was then acquired by Automattic, the top developer of WordPress, for just $3 million in 2019.
But the company has struggled to attract new users and advertising revenues are falling. CEO Mullenweg said: “We are not profitable. We are losing about $30 million a year. We need to figure out how to increase revenue and get more people to use Tumblr.”
In 2018, Tumblr banned all sexually explicit content, which led to a significant drop in traffic. The company has since reversed that decision, but it’s unclear whether it will be enough to turn things around.
Tumblr’s decline has also been attributed to the emergence of social media platforms such as Instagram, TikTok, Mastodon and Discord, which are attracting new generations. It remains to be seen whether Tumblr can regain its former popularity.
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