Can Tumblr Turn a Profit?
David Karp has focused on expanding Tumblr Inc.’s network of free bloggers for the past five years. Today, 55 million of them are posting text, photos and videos on the site. Even Beyoncé and Jay-Z turned to Tumblr’s blogging platform earlier this year to release the first photos of their newborn to the public.
But now, both Mr. Karp, a 25-year-old New Yorker, and his company are heading into a risky new phase: Making the site profitable. For the first time, he is making plans to sell advertising and sponsorships to Tumblr’s network of bloggers and their followers.