The board votes to remove Mullenweg

On September ninth, Automattic's six-member board voted to put CEO Matt Mullenweg on paid leave. Mullenweg announced it himself on Slack, saying Mark Davies, Ann Dunwoody, Toni Schneider, and Sue Decker had conspired against him.

“I voted against that.”

Mullenweg regains control in 33 hours

Thirty-three hours later, Mullenweg was back in charge. Three directors resigned or were removed, and CFO Mark Davies and chief legal officer Andy Missan were fired. Mullenweg returned with a joke.

“(Don't call it a comeback…) Howdy everybody!”

Nobody explains what happened

The board members have not publicly explained why they wanted Mullenweg out. Mullenweg has declined to describe why he was removed or how he regained control. Even major investors were left guessing.

“I don't understand how he basically reinstated himself and reversed the decision of the vote.”

The real conflict: WP Engine

Court filings and interviews show Automattic was divided over Mullenweg's fight with WP Engine, a company that sells WordPress hosting. The dispute has become a major liability for Automattic.

WP Engine's lawsuit and claims

WP Engine sued Automattic and Mullenweg in October two thousand twenty-four for attempted extortion.A federal judge revived antitrust claims on September twenty-fourth.If WP Engine wins, federal law lets it collect three times its damages.

WordPress powers the web

WordPress is free publishing software that powers more than forty percent of the web.Mullenweg created it with Mike Little in two thousand three.He founded Automattic two years later to build businesses on top of it.

Automattic's growth and funding

Automattic acquired Tumblr in two thousand nineteen for three million dollars. In two thousand twenty-one, it raised two hundred eighty-eight million dollars in its fifth funding round, valuing the company at about seven point five…

Mullenweg's complaint about WP Engine

In two thousand twenty-four, Mullenweg said WP Engine wasn't holding up its end of the open source deal.Automattic donated about three thousand nine hundred hours a week to WordPress.WP Engine gave roughly forty back.

Mullenweg's demands and language

Mullenweg demanded a cut of WP Engine's revenue for using the WordPress trademark.Automattic's first offer was five million dollars a year.He called WP Engine a cancer on WordPress and cut it off from key resources.

“cancer”

Internal disagreement over strategy

Inside Automattic, Mullenweg's demands didn't make sense to some employees.His plan seemed to be hitting WP Engine until it hurt, with no clear endgame.

The alignment offer and departures

In October two thousand twenty-four, Mullenweg offered staff who disagreed with his approach thirty thousand dollars or six months' salary, whichever was higher, to leave.

Support for Mullenweg's stance

Some employees thought Mullenweg did the right thing.Naman Malhotra, a former WooCommerce engineering lead, said if you use open source, you must contribute back.Most colleagues remained believers in what Mullenweg was trying to do.

“If you're using open source, you need to contribute back.”

Mullenweg's control of the company

Mullenweg owns about eighty-four percent of the voting power of Automattic's stock. Exactly how is unclear, even to some shareholders. The board's decision to act against him was mathematically impossible to succeed.

The evidence preservation problem

WP Engine's lawsuit increasingly became a fight over evidence. Automattic had turned over just sixteen of Mullenweg's Telegram messages, one Signal conversation and no WhatsApp messages. Mullenweg lost a phone and can't locate a laptop.

Mullenweg's Signal advice

In September two thousand twenty-four, as the fight began, Mullenweg urged people on X to contact him using Signal with disappearing messages.

“Signal with disappearing messages.”

The board's special committee acts

A special committee of three directors was formed: Toni Schneider, Sue Decker, and Ann Dunwoody.They voted to put Mullenweg on paid leave and named CFO Mark Davies interim CEO.

Davies and Missan's severance

During the thirty-three hours Mullenweg was out, Davies and Missan signed each other's severance agreements worth about eight point one five million dollars combined.By September twelfth, Mullenweg was back in charge and both were fired.

Mullenweg's new board

Mullenweg named his new board two weeks later. It includes science fiction author Hugh Howey, author Andy Chan, and IRL co-founders Krutal Desai and Henry Khachatryan. In public, Mullenweg has played the episode for laughs.

“If you don't have a coup attempt every few years, you're not hiring strong enough leaders.”