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Automattic acquires analytics company Parse.ly

Automattic, the for-profit company tied to open-source web publishing platform WordPress, is announcing that it has acquired analytics provider Parse.ly.

Specifically, Parse.ly is now part of WPVIP, the organization within Automattic that offers enterprise hosting and support to publishers, including TechCrunch. (We use Parse.ly, too.)

WPVIP CEO Nick Gernert described this as the organization’s first large enterprise software acquisition, reflecting a strategy that has expanded beyond news and media organizations — businesses like Salesforce (whose venture arm invested $300 million in Automattic back in 2019), the NBA, Condé Nast, Facebook and Microsoft now use WPVIP for their content and marketing needs.

Both companies, Gernert said, come from similar backgrounds, with “roots” in digital publishing and a “heavy focus on understanding the impact of content.”

“We’ve really started to shift more towards content marketing and starting to think more deeply beyond just what traditional page analytics provide,” he continued. That means doing more than measuring pageviews and time on site and “really starting to look more deeply at things like conversation, attribution, areas … that from a marketer’s perspective are impactful.”

WordPress and Parse.ly already work well together, but the plan is to make WPVIP features available to Parse.ly customers while also making more Parse.ly data available to WPVIP publishers. And Gernert said there are also opportunities to add more commerce-related data to Parse.ly, since Automattic also owns WooCommerce.

The goal, he said, is to “make Parse.ly better for WordPress and best for WPVIP.”

At the same time, he added, “There’s no plans here to make Parse.ly the only analytics solution that runs on our platform. We want to preserve the flexibility and interoperability [of WordPress], and we want to make sure from a Parse.ly perspective that it still exists as a standalone product. That’s key to its future and we will continue to invest in it.”

Parse.ly was founded in 2009 and has raised $12.9 million in funding from investors including Grotech Ventures and Blumberg Capital, according to Crunchbase. Parse.ly founders Sachin Kamdar and Andrew Montalenti are joining WPVIP, with Kamdar leading go-to-market strategy for Parse.ly and Montalenti leading product.

“We’ve always had deep admiration for WPVIP’s market position as the gold standard for enterprise content teams, and we’re thrilled to be able to join together,” Kamdar said in a statement. “From the culture and people, to the product, market and vision, we’re in lockstep to create more value for our customers. This powerful combination of content and intelligence will push the industry forward at an accelerated pace.”

The financial terms of the acquisition were not disclosed.

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How Automattic wants to build the operating system of the web

Automattic, the company behind WordPress.com, WooCommerce, Longreads, Simplenote and soon Tumblr, is now worth $3 billion. But its founder and CEO Matt Mullenweg has a bigger goal. He wants to make the web better, more open and diverse.

With the rise of social networks and closed platforms, Automattic’s mission statement has never sounded so important. Automattic doesn’t want to be the hot new startup. It wants to build a strong foundation to empower content creators for decades to come.

In an interview this week, Matt Mullenweg discussed why he raised $300 million from Salesforce Ventures, what he thinks of the current state of the web and how Automattic has a shot at building the open-source operating system of the web. The interview was edited for clarity and brevity.

(Photo Credit: Christopher Michel / Flickr under a CC BY 2.0 license)


Romain Dillet: Tell me more about how much money you’ve raised, who you’ve raised from.

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Automattic acquires subscription payment company Prospress

Automattic, the company behind WordPress.com, WooCommerce, Longreads, Simplenote and a bunch of other cool things, is acquiring a small startup called Prospress. Among other things, Prospress has developed WooCommerce Subscriptions, a recurring payment solution specifically designed for WooCommerce.

Given that physical and digital subscriptions are taking over the e-commerce world, it makes sense that Automattic wants to own WooCommerce Subscriptions. Charging customers on a regular basis is one of the most painful challenges when it comes to payment.

Prospress also works on a marketing automation tool to remind customers that they have abandoned their carts, follow up, cross sell and more. The company also has a tool to test your checkout functionality before going live. After the acquisition, the Prospress team will keep iterating on its own products and join the rest of the WooCommerce team.

This is a strategic acquisition more than anything else. Prospress has around 20 employees, so it’s not going to change the face of Automattic and its team of 900 people. But it’s an important move so that Automattic can own a bigger chunk of the (e-commerce) stack.

WooCommerce competitor Shopify doesn’t provide subscriptions out of the box. You have to use third-party products, such as Bold or ReCharge.

Like WordPress, WooCommerce is an open-source project — it integrates directly with WordPress. It means that anyone can download WooCommerce and host it on their servers. And the WooCommerce ecosystem is one of the main advantages of WooCommerce compared to obscure e-commerce solutions.

Many WooCommerce users probably host their e-commerce website on WordPress.com. But by controlling the payment module, Automattic can also generate some revenue if WooCommerce users choose to use WooCommerce Subscriptions as their payment solution.

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