From an interview between Sarah Lacy and Matt Mullenweg;
We were in New York, Tumblr is a New York company, and a New York audience wanted to know how the company plans to compete.
The answer lies in the way WordPress views Tumblr. Mullenweg said Tumblr is not a competitor. It’s complementary. In the way that Twitter or Facebook act as tools that can amplify a message and share content across the Web, Tumblr is another medium. Tumblr’s dashboard traffic is higher than its pageview traffic, Mullenweg said.
So it makes sense that the company is building a tool that pushes blog posts to Tumblr. Mullenweg let slip on stage that, in the coming weeks, WordPress would roll out that functionality, which I understand will look similar to the way Google’s Blogger does.
“Let’s say that there is a way that when you post to WordPress it goes to Tumblr, and it has its own website instead of just appearing in a dashboard,” he said. “I think that if Tumblr continues on its path WordPress and Tumblr could be highly complementary in that regard.”
This excites me a lot.