Automattic Board Seeks New Direction After CEO Leave Bid Fails

Automattic CEO Matt Mullenweg has reshaped the company’s leadership structure following a dramatic internal power struggle that ended with the failure of a board-led effort to remove him. The newly constituted board, revealed to employees on Friday, features a diverse lineup including best-selling science-fiction author Hugh Howey and two co-founders of the now-defunct social application IRL. Mullenweg confirmed these appointments after initially posting about a recent meeting without disclosing the attendees.

This governance upheaval marks the latest chapter in a conflict at Automattic, the parent company behind WordPress.com, Tumblr, and WooCommerce. Earlier this month, the previous board voted to place Mullenweg on leave, an action intended to pave the way for his removal from the board itself. However, the CEO reclaimed control just 33 hours later, subsequently removing or accepting the resignations of the directors involved in the move. The brief period of his absence lasted exactly 33 hours and 20 minutes, according to company records.

The new advisory group includes American writer Hugh Howey, known for the “Silo” series, with whom Mullenweg previously hiked the Camino de Santiago in Spain. Also joining are Amy Chan, author of “Breakup Bootcamp,” who recently engaged with Mullenweg’s announcements regarding the company’s AI site builder, Spacefast. Additionally, the board welcomes Henry Khachatryan and Krutal Desai, co-founders of IRL. Khachatryan is described by Mullenweg as a “founder and builder” and a long-time collaborator with the late technology writer Om Malik. It is worth noting that IRL ceased operations after investigations revealed its user base consisted largely of bots. The co-founders, along with former CEO Abraham Shafi, had previously sued SoftBank and other investors following allegations of securities fraud by the investor.

New advisers have also been brought into the fold, including former Woop CTO Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah. In his announcement to staff via Slack, Mullenweg emphasized his consolidated authority under Delaware law, stating he serves as CEO, President, Treasurer, and Secretary. He reflected on the recent turmoil by saying, “We had the most interesting board meeting in a decade (since the Woo acquisition).”

Consolidation of Power and Legal Shifts

Mullenweg leveraged his significant voting power, which he controls at 84%, to replace the board members who opposed him. This consolidation follows the resignation of Toni Schneider, a founding CEO of Automattic and current CEO of Bluesky, who stepped down from the board. Mullenweg also removed General Ann Dunwoody, while Sue Decker resigned. Furthermore, CFO Mark Davies, who was slated to become interim CEO, and Chief Legal Officer Andy Missan were let go.

The replacement of legal counsel raises questions about the connection between the boardroom fight and Automattic’s ongoing litigation with hosting provider WP Engine. The dispute involves trademark issues and claims regarding WP Engine’s contribution to the WordPress open-source project. Court filings from July show that WP Engine’s legal team accused Mullenweg of destroying evidence. Following the failed ousting attempt, Mullenweg retained Susman Godfrey LLP as new litigation counsel, describing them as one of the top trial firms in the country.

In an internal message addressing the chaos, Mullenweg acknowledged the unsettling nature of the events but asserted his return to full control. He stated:

“Last week, several board members formed a special committee and voted to place me on a leave of absence. They did this without advance warning and without giving me a meaningful opportunity to understand or respond to their concerns before they acted. I was denied even a brief extension to consult with independent legal counsel. I took the steps necessary to reverse that action. I am back and fully in charge of the company. I am again working alongside you to make our company a success. I also want to share that we have retained Susman Godfrey LLP as our new litigation counsel. Susman Godfrey is one of the top trial firms in the country, and they will be protecting our company’s interests and defending us in our ongoing litigation. I know this past week has been unsettling. I appreciate your patience and your continued focus on the work that matters. I will have more to share soon, but for now, know that Automattic’s mission and priorities remain unchanged.”

The original board never publicly disclosed its reasons for attempting to remove Mullenweg. Following the resolution of the immediate crisis, Mullenweg shared a perspective on leadership dynamics, tweeting: “Founder advice: If you don’t have a coup attempt every few years, you’re not hiring strong enough leaders.”

Looking ahead, Mullenweg provided a stark outlook on the company’s future trajectory. After confirming the board additions and advisers, he issued a statement emphasizing the critical nature of the upcoming period: “We are living through times of unprecedented change, possibly a singularity. The next six months will determine the next 20 years of Automattic.”