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Matt Mullenweg fills Automattic's board with two authors and two IRL co-founders after a failed ouster

Matt Mullenweg's 84% vote returned him to control of Automattic 33 hours after its board put him on leave. For businesses on WordPress.com, WooCommerce or Tumblr, that vote is the governance they are buying into, whoever he names to the board.

The Product Desk · Product desk

Illustration accompanying Matt Mullenweg fills Automattic's board with two authors and two IRL co-founders after a failed ouster

What happened

  • Mullenweg told Automattic staff Friday that the board now includes novelist Hugh Howey, author Amy Chan and IRL co-founders Henry Khatachryan and Krutal Desai, according to TechCrunch's sources.
  • Earlier this month the previous board voted to put Mullenweg on leave, and he retook control 33 hours later, removing or accepting resignations from the directors involved.
  • He also let go of chief financial officer Mark Davies, who was slated to become interim CEO, and chief legal officer Andy Missan, TechCrunch confirmed with sources.
  • After his return Mullenweg replaced Automattic's legal counsel and retained the firm Susman Godfrey as the company's new litigation counsel.

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Why it matters

  • precedent Any director who moves against Mullenweg now knows how it ends: the last attempt was reversed in about a day and a half and cost its authors their seats.
  • constraint With the old board's reasons undisclosed, customers cannot tell whether the dispute touched finances, product plans or the WP Engine case, so the risk cannot be sized from outside.
  • decision Vendor reviews that count an independent board as a control need a different one for Automattic, and a tested exit path is the control a customer can actually hold.
  • exposure An adverse ruling on the evidence-destruction accusation in the WP Engine case would land on a company whose officer titles and board both run through the accused.

A merchant with a WooCommerce store who fills in a vendor-risk form this week will reach a box asking who oversees the supplier's chief executive. Automattic is the parent of WooCommerce, WordPress.com and Tumblr [19], and on paper the answer there is the chief executive himself. In his announcement to staff, Mullenweg wrote that "for purposes of Delaware law, I am the CEO, President, Treasurer, and Secretary," according to TechCrunch [12].

The ties TechCrunch reports between Mullenweg and his new directors are personal. He and Howey both hiked the Camino de Santiago in Spain in 2018 [7]. Chan recently reposted his tweet about Spacefast, Automattic's AI site builder [8]. He described Khatachryan as "a founder and builder" [9]. IRL, the app Khatachryan and Desai co-founded, shut down after investigations found that nearly all of its users were bots [10]. In the same announcement, Mullenweg said: "We had the most interesting board meeting in a decade (since the Woo acquisition)" [13].

Who sits on this board matters less than who holds the votes, and I think a slate of career directors would hit the same limit. Mullenweg controls 84% of the vote, he said at TechCrunch Disrupt 2024 [4]. That leaves 16% for every other holder combined [22]. The previous board included Toni Schneider, a founding CEO of Automattic, and Gen. Ann Dunwoody [5]. Its move against him lasted "33 hours and 20 minutes," Automattic told TechCrunch [3].

Procurement teams tend to tell themselves that a vendor's board sits between its chief executive and a bad call. Automattic's customers have a CEO whose own account is that he "was denied even a brief extension to consult with independent legal counsel" and then "took the steps necessary to reverse that action" [20][23]. The board never publicly shared its reasons for trying to remove him [14]. Automattic told TechCrunch it hoped to comment soon [21]. TechCrunch wrote that the change of legal counsel raises questions about whether the fight is tied to the company's lawsuit with WP Engine over trademarks [16]. WP Engine's lawyers accused Mullenweg in July of destroying evidence, court filings show [17].

For the merchant with the form, two questions sort the response. The first is the share of revenue or publishing that runs on a service Automattic hosts and operates for you. The second is how many weeks it would take to run that elsewhere. A large share with a slow exit justifies a written exit plan and a current export of your data kept off Automattic's systems. Where the share is large and the exit fast, one rehearsed move tests the estimate. A small share goes in the risk file with a note about the board. The plan costs staff time now. So far the cost of this fight has fallen inside Automattic, on the directors and officers who left [5][6].

What to watch

  • Whether Automattic or the departed directors publish the reasons behind the vote to place Mullenweg on leave.
  • How the court handles WP Engine's accusation that Mullenweg destroyed evidence, now that Susman Godfrey is running Automattic's litigation.
  • Any change to pricing, terms or roadmap for WordPress.com, WooCommerce or Tumblr following the CFO and chief legal officer departures.
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