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The development of Tumblr began in 2006, during a two-week interval between the contracts of David Karp's software consulting firm, Davidville. Karp, who had been interested for a while in tumblelogs (blogging briefly), hoped that one of the established blogging platforms would introduce its own tumblelogging platform. After a year of waiting, seeing that no one was doing it, Karp and promoter Marco Arment started working on their own tumblelogging platform. Tumblr was released in February 2007 and within two weeks, the service had gotten 75,000 users. Arment left the company in September 2010 to focus on Instapaper.

In early June 2012, Tumblr offered its first major brand advertising campaign along with Adidas. Adidas introduced a Tumblr official soccer blog. This release was only two months after Tumblr announced that it would start using paid advertising on its site. On May 20, 2013, it was announced that Yahoo! and Tumblr had reached an agreement for Yahoo! to acquire Tumblr for US $ 1.1 billion in cash. Many of the users of Tumblr were displeased with the news, leading some to start a petition for signatures, reaching almost 170 000 signatures. David Karp will remain executive director and the deal was closed on June 20, 2013.