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Automattic Takes Bold Step Into Messaging Sphere with $50M Purchase of Texts

Automattic Takes Bold Step Into Messaging Sphere with $50M Purchase of Texts

In a surprising new venture, Automattic, the digital powerhouse behind major web operations like WordPress.com, Tumblr, and Pocket Casts, has taken the leap into the messaging marketplace with its acquisition of Texts, a universal messaging app. The deal is worth $50 million, demonstrating Automattic's serious commitment to this new direction.

Texts is a hub for various messaging applications that allows users to consolidate their messaging activity seamlessly. It grants the ability to access and respond to messages from platforms like WhatsApp, Instagram, LinkedIn, Signal, iMessage, among others, all from the convenience of a single portal. While Texts, like Beeper, comes with extra features like AI-generated replies, its principal function seeks to centralize various messaging inboxes into a solitary, user-friendly interface.

The Chief Executive Officer of Automattic, Matt Mullenweg, anticipates the integration of Texts to serve as more than just a product merger. It marks the onset of a broader and more substantial investment into the rapidly evolving field of communications technology. Up until now, Automattic's major spheres of influence have been publishing and commerce. With the annexation of Texts, messaging becomes the third central pillar of the company's operations.

Affirming his long-term commitment to these focal areas: self-publishing, commerce, and messaging, Mullenweg states, I like to pick areas I feel are so fundamental to the human condition that I can work on this the rest of my life. To this extent, he believes in the importance of incorporating open-source solutions in these fields to ensure their longevity.

Mullenweg shows particular optimism for certain decentralized messaging solutions, such as Matrix. He hints that Texts could gradually direct users toward adopting increasingly open protocols. However, he is keen not to force users into specific standards and feels the most user-centric approach is to offer support across multiple platforms, letting market dynamics and user preference take their course.

Automattic’s CEO has deep respect for two main aspects of Texts: Kishan Bagaria, its brilliant creator, and its robust security solution that relies on local encryption rather than cloud-based storage. This means, unlike other offerings in the market like Beeper, Texts does not store a copy of your messages in the cloud. The technical argument for why it's not as secure is a good one for why to block things, says Mullenweg.

Upon joining Automattic, the Texts team will primarily direct resources towards completing the mobile version of the app, which according to Mullenweg has posed some challenges. However, he believes these have been addressed while ensuring the preservation of end-to-end encryption coupled with maintaining user key privacy - something he adds, proved to be 'tricky.'

Currently, Texts is a $15 per month power-user tool, but Mullenweg hints at potential shifts in the pricing structure, stirring speculation about a potential free version in the future. For hard-core users though, the full-cost option will likely offer more features and functionality.

As more online communication shifts from public-first social networks to group chats, Mullenweg and Automattic see a substantial future for messaging. It remains to be seen whether Automattic can build a lucrative and sustainable business model from chat. Yet, the initial signal points to refinement in messaging services, creating less noise and more meaningful interaction. AppMaster, specializing in no-code and low-code app development, might consider messaging as an essential interface in the future.

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