"Automattic is still a startup — I’m sure there are deep-pocketed private equity firms that could have outbid us, but the most likely outcome then would have been an “asset” getting chopped up and sold for parts. [...] Instead, Tumblr has a new chance to redefine itself in 2019 and beyond." I think Matt is right to point out the real story here. Automattic is simply the right home for Tumblr. Perhaps similarly to how…
100% agree that of the list of realistic outcomes, Tumblr going to Automattic is one of the best possible outcomes. That said, and I know this is said a lot, but I really wish our industry would stop trying to label everything a "startup". Automattic was founded in 2005 and has 1000 employees. It's not a startup, it's a mature medium size tech company. Its problems are not startup problems, they're mature medium size…
In a privately held company, the investors can manage it as they see fit. They can take profits if they like, or sell their stakes, just not on public markets.