Inside the 33-Hour Failed Boardroom Coup at Automattic
WordPress founder Matt Mullenweg survived a sudden board attempt to remove him from power.
1Sudden Boardroom Intervention
On September 9, Automattic’s six-member board voted to place CEO Matt Mullenweg on paid leave. The move was unexpected, involving directors who had mentored Mullenweg for years. Mullenweg immediately notified employees via Slack, naming Mark Davies, Ann Dunwoody, Toni Schneider, and Sue Decker as the architects behind the attempted leadership transition.
2Rapid Power Restoration
Within 33 hours of the board’s vote, Mullenweg successfully regained control of the company. The three directors who initiated the move were removed from their positions, alongside the CFO and chief legal officer. Mullenweg announced his return to staff by sharing a link to LL Cool J’s song, Mama Said Knock You Out.
3The WP Engine Conflict
The internal turmoil stems from a bitter legal battle with WP Engine, a hosting company. Mullenweg accused WP Engine of failing to contribute adequately to the open-source WordPress project. This dispute escalated into a federal lawsuit, with WP Engine alleging extortion and antitrust violations, creating significant legal and financial liability for Automattic.
4Mass Staff Departures
Mullenweg’s aggressive strategy against WP Engine caused deep internal division. In October 2024, he offered an alignment buyout to employees who disagreed with his approach, providing six months of salary or $30,000. Approximately 159 staffers, representing 8.4% of the workforce, accepted the offer and left the company during this period.
5Voting Power Asymmetry
Despite the board's attempt to oust him, Mullenweg maintains approximately 84% of the voting power in Automattic. Investors, including BlackRock, have expressed confusion regarding how he amassed such control. This concentration of power rendered the board's attempt to remove him a mathematical impossibility, suggesting the move was a symbolic protest.
6Evidence Preservation Issues
Court filings indicate the board may have acted due to concerns over evidence preservation in the WP Engine lawsuit. Automattic struggled to produce relevant digital communications, including Telegram and Signal messages. Mullenweg reportedly lost a phone and a laptop, complicating discovery processes and raising concerns about potential judicial sanctions for spoliation.
7Legal Counsel Scrutiny
During an October 7 hearing, a magistrate judge noted that Automattic’s former lawyers exaggerated their efforts to preserve Mullenweg’s messages. While the judge stopped short of finding malicious spoliation, he labeled the previous claims as false. Legal experts warn that withholding evidence in civil litigation can lead to severe penalties and unfavorable judicial assumptions.
8Open Source Ecosystem Dynamics
Automattic operates on a complex model where it gives away software while competing with companies built on that same platform. Mullenweg argues that companies profiting from WordPress must contribute back to the ecosystem. He characterized WP Engine as a cancer for allegedly cutting features and failing to support the open-source community.
9Differing Internal Perspectives
Former employees remain divided on Mullenweg’s leadership style. Some critics argue his public confrontation with WP Engine was a strategic error that harmed the company’s future. Conversely, supporters view his actions as a necessary defense of open-source principles, praising his transparency and willingness to accept pushback from staff during his tenure.
10The Role of Mentors
The board members involved in the coup were long-term associates, including former Yahoo executive Toni Schneider, who helped run Automattic since 2006. The inclusion of retired four-star general Ann Dunwoody, whom Mullenweg recruited for her expertise in decentralized management, highlights the depth of the personal and professional relationships that were fractured by this conflict.
11Financial and Strategic Context
Founded in 2005, Automattic has raised nearly $1 billion, reaching a $7.5 billion valuation in 2021. The company manages WordPress, Tumblr, and WooCommerce. The current legal battle threatens this foundation, as antitrust claims could potentially lead to triple damages if the court rules against Automattic in the ongoing federal litigation process.
12Unresolved Corporate Governance
The failed coup highlights the risks of extreme voting concentration and the challenges of managing open-source ideals within a for-profit structure. With key executives gone and legal battles intensifying, Automattic faces a precarious future. The company must now navigate both federal antitrust scrutiny and the internal fallout of its recent leadership crisis.
Original article: Fortune | FORTUNE — Inside the 33-Hour Failed Boardroom Coup at Automattic