Now, it all makes sense.
Now, I understand why Automattic came out of nowhere earlier this week with an ultra-aggressive strategic move to increase bandwidth for WordPress.com users to 3GB – a move that will likely force rival TypePad to follow suit.
According to GigaOm, Automattic and blog/boy wonder Matt Mullenweg has raised $29.5-million from a group of investors that includes The New York Times.
I’m not sure how I feel about the NYT becoming an investor in Automattic/Wordpress. On one hand, it seems strange to have a traditional media organization have a stake in WordPress. I mean, come on, this is WordPress – the open-source project that we all know and love, right!
On the other hand, it is the NYT – one of the best media organizations in the world and an enthusiastic WordPress user. (About.com guides are published using WordPress, and the NYT has more 50 WordPress-powered blogs.)
So, what does WordPress do with all that dough other than buying a few more servers and upgrading its Akismet anti-spam service?
Does this signal a major change in how Automattic deals with WordPress and the fee-based services it offers. My sense is we can expect the “ah shucks, we’re WordPress” approach to change as Automattic becomes a serious business looking for serious revenue.
And maybe it’s time for Automattic to be looking at some serious acquisitions. A solid publishing tool would be a start. Who knows, maybe Automattic will get into the online advertising business given it generates so much traffic and has such a strong brand. GigaOm suggests that Automattic could also launch a social networking business. With $29.5-million in the bank, the company has the ability to do some interesting deals.
All in all, there are interesting times ahead for Automattic and WordPress. If I were TypePad (and maybe Blogger), I’d be very worried.
For more, check out Mullenweg’s blog.
Update: The financing values Automattic at $150-million to $200-million. Some of the money will be used to cash out some of the company’s investors – CNet being one of them.
Technorati Tags: Automattic, Blogs, Matt Mullenweg, Veture Capital, WordPress
WordPress Company Automattic Gets $29.5M - Technozzle
[...] Coverage at TechCrunch, Mark Evans, Mathew Ingram, The Blog Herald, Photo Matt and Toni Schneider. addthis_url = [...]
BloggerTalks » Blog Archive » Automattic secures $29.5m in funding, WordPress creator happy
[...] of blogging platform WordPress (which BloggerTalks incidentally uses) by Matt Mullenweg, have raised another $29.5m in funding, with The New York Times opening its wallet. Matt himself have a post up, [...]
I searched your site to see if I could find previous posts on what you would consider a serious publishing tool and how it would fit into our offerings, but wasn’t successful. What do you mean by a serious publishing tool? Thank you.
What I meant was something like Ecto – a publishing tool with that’s a lot more user-friendly and feature-rich than WordPress’ publishing tool.
Breaking Out Blogger “Pay” | Mark Evans
[...] of bloggers with its comment service. A WordPress-Disqus deal makes sense given WordPress has lots of cash to make acquisitions, and Disqus is a cool service with, to date, no business plan. For more on [...]
Thanks for mentioning Ecto… I have been looking for something like that for a while, its far better than wordpress in my opinion. I know you pay for it but its far better if you are taking online publishing seriously.
Matt Mullenweg: Wordpress Evangelist/Rock Star | Mark Evans
[...] rise as the blogging platform and Automattic’s emergence as a venture-back entity ($29.5-million in the last round from investors such as the New York Times), Mullenweg still seems the same guy [...]
of blogging platform WordPress (which BloggerTalks incidentally uses) by Matt Mullenweg, have raised another $29.5m in funding, with The New York Times opening its wallet. Matt himself have a post up,
I searched your site to see if I could find previous posts on what you would consider a serious publishing tool and how it would fit into our offerings, but wasn’t successful. What do you mean by a serious publishing tool? Thank you.
What I meant was something like Ecto – a publishing tool with that's a lot more user-friendly and feature-rich than WordPress' publishing tool.
Thank you for this informative read, I really appreciate sharing this great post. Keep up your work.
Well, if NYT can have a piece of WordPress it will surely move people to Joomla, which I believe is open source also.
How does affiliate marketing work?
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