The same thing happened when Yahoo was running the show, the bleed-out was just slower because they were more timid about making sweeping changes to Tumblr's ecosystem.
Instead of Yahoo or Verizon realizing that they weren't fit to run a community and divesting the company to more competent leadership, as money machines they were unable to recognize the human element behind these companies and ripped them to shreds trying to scrounge up pocket change.