Automattic CEO Coup: Matt Mullenweg Reclaims Role in 33 Hours

Earlier this month, while migrating a WordPress blog to Kubernetes, a significant event unfolded at Automattic, the company behind WordPress.com, Tumblr, and WooCommerce. The board of directors attempted to remove founder Matt Mullenweg from his CEO position.

The Coup Attempt

On paper, the transition appeared smooth. The CFO, Mark Davies, was promoted to CEO, and the company issued a statement expressing the board's full confidence in him. Employees reportedly told TechCrunch they were "ecstatic." However, the board underestimated Matt Mullenweg, co-creator of WordPress at 19, who has been embroiled in a two-year legal battle with WP Engine. Mullenweg, known for his strong commitment to open-source ideals, quickly fought back.

Matt's Swift Return

Matt Mullenweg managed to reclaim his CEO chair in just 33 hours. The executives who tried to replace him left with $8 million in severance packages.

The Board's Move

The board of directors in tech companies typically oversees the CEO, providing leverage in situations where a CEO's actions might devalue the company. This was the case for Automattic's board, as Mullenweg had been involved in a legal dispute that reportedly devalued the company by 80%. While Mullenweg was away, the board sought his replacement.

Upon his return on September 9th, Mullenweg received a written proposal from the board stating that in 50 minutes, they would vote to remove him as CEO of the company he founded 21 years prior. His request for a few hours to allow his lawyer to review the proposal was denied. Fifty minutes later, CFO Mark Davies, supported by board members Sue Decker, retired four-star general Ann Dunwoody, and Tony Schneider (whom Mullenweg had hired as Automattic's first CEO and once called his "business soulmate"), sealed his fate.

Matt's Response

Following his removal, Mullenweg, who is reportedly very wealthy, used his access to the company's internal communication channels. He posted that he would not attend the next day's leadership meeting, alleging that Davies had conspired with the board behind his back. Although no official reason was given for his removal, Mullenweg speculated it was due to his ongoing legal issues with WP Engine. WP Engine had accused him of destroying evidence in their case after 20 months of his signal history and two of his phones went missing.

One theory suggests the board believed removing Mullenweg might lead to a more lenient judgment for the company. Mullenweg, however, theorized that Silver Lake, the private equity firm behind WP Engine, was involved in a plot to "destroy his life."

The next day, Mullenweg tweeted about needing security researchers to move some of his data off Automattic servers, likely referring to WordPress.org, a site he personally owns and from which all WordPress installations download plugins, themes, and security updates.

The "Pirate" Emerges

Things escalated in Slack. Mullenweg, who claimed he hadn't sworn in 42 years, posted, "Oh, since I'm a pirate now, I [expletive] curse after 42 years of never uttering a curse word, it's kind of [expletive] fun." He then added, "The Slack smells funny like turncoats," removed every other admin, and moved to the WordPress.org Slack, where a pirate flag emoji appeared next to his name.

A more revealing post came from Reddit, where Mullenweg responded to a user asking about replacing the board. He stated he could fill board seats whenever he wanted, but that wasn't the point. This highlighted his significant power: he holds 84% of Automattic's voting power. This meant that while the board could vote him out, he could simply replace the board with members who would reinstate him.

The Reversal

This is precisely what happened. Early Friday morning, Mullenweg returned to the announcements channel in Slack, declaring that the board was "back in agreement" and he was "back in control." He then tweeted that "if you don't have a coup attempt every few years, you're not hiring strong enough leaders." When TechCrunch asked if he was trolling, he responded, "I'm not a troll, I'm a pirate."

By Saturday, Automattic confirmed Mullenweg was CEO again with the full support of the board. However, what wasn't initially disclosed was that the entire existing board had been replaced, and Mullenweg had fired both Davies and Chief Legal Officer Andy Massan.

The Cost of the Coup

Mullenweg was out of his position for only 33 hours. During this brief period, Davies and Massan, who were running the company, drafted their own severance agreements. These agreements stipulated that if fired, they would receive a full year's salary, a year of health insurance, and immediate vesting of all their stock. Upon Mullenweg's return, he fired both of them, resulting in Automattic owing them over $8 million.

Employees remain without a clear explanation for these events. They were told to await a message from Mullenweg, but instead received a blog post about him trying to buy a houseboat.