Automattic has a new board after failed attempt to put CEO on leave

Automattic CEO Matt Mullenweg has rebuilt the company’s committee conscionable weeks aft its erstwhile directors tried, and failed, to oust him. The board, which was announced to unit Friday, is an eclectic radical that includes a best-selling science-fiction writer and 2 co-founders of the now-defunct societal app IRL, TechCrunch has learned, and Mullenweg has confirmed.

The caller committee is the latest twist successful an interior governance combat astatine Automattic, the genitor institution of WordPress.com, Tumblr, WooCommerce, and others. Earlier this month, the erstwhile committee voted to spot Mullenweg on leave successful an effort to region him from the board, lone to person the CEO retake control conscionable 33 hours aboriginal and region oregon judge the resignations of the directors who were involved.

This week, Mullenweg posted astir a committee meeting but didn’t stock who helium was gathering with. Now he’s yet informing Automattic employees of the committee changes via the company’s announcements transmission successful Slack.

Sources told TechCrunch the caller Automattic committee includes:

• American writer Hugh Howey, writer of the “Silo” publication series. (Mullenweg and Howey both hiked on the Camino de Santiago successful Spain backmost successful 2018.)
• “Breakup Bootcamp” writer Amy Chan (who precocious reposted Mullenweg’s tweet astir the company’s AI tract builder, Spacefast).
• IRL co-founder Henry Khachatryan, who Mullenweg described arsenic a “founder and builder,” a longtime collaborator with the precocious exertion writer Om Malik, and the website builder of writer Nick Bilton.
• And Krutal Desai, who co-founded the societal app IRL with Khachatryan.

We should enactment that IRL shut down aft investigations revealed that astir each of its idiosyncratic basal was made up of bots. The co-founders, who besides included CEO Abraham Shafi, aboriginal sued SoftBank and different investors aft SoftBank had sued for securities fraud.

New advisers person besides joined Automattic, including erstwhile Woop CTO Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah.

In the announcement to staff, Mullenweg reportedly wrote that, “for purposes of Delaware law, I americium the CEO, President, Treasurer, and Secretary,” adding that the attempted firing had besides brought successful “many astonishing supporters.”

“We had the astir absorbing committee gathering successful a decennary (since the Woo acquisition),” helium said.

Reached for comment, Automattic said it hoped to person a remark for TechCrunch soon. After publication, Mullenweg confirmed the committee additions and advisors, and shared the pursuing statement: “We are surviving done times of unprecedented change, perchance a singularity. The adjacent six months volition find the adjacent 20 years of Automattic.”

Image Credits:Kimberly White/Getty Images for TechCrunch

Automattic’s archetypal committee had voted to enactment Mullenweg connected paid leave, but helium took backmost power of the company, letting spell of those progressive successful what he described connected X arsenic a “coup attempt.”

To regenerate the board, Mullenweg leveraged his voting shares — he controls 84% of the vote, helium said astatine TechCrunch Disrupt 2024. The play betwixt his departure and instrumentality lasted precisely “33 hours and 20 minutes,” Automattic told TechCrunch previously.

Following the failed committee vote, member Toni Schneider, a founding CEO of Automattic and present CEO of Bluesky, resigned from his committee position. Mullenweg himself removed General Ann Dunwoody from the board, and committee subordinate Sue Decker besides resigned. In addition, Mullenweg fto spell of Automattic CFO Mark Davies, who was slated to go interim CEO, and main ineligible serviceman Andy Missan, TechCrunch confirmed with sources.

The committee ne'er publically shared its reasons for trying to oust Mullenweg.

Of note, Mullenweg besides replaced Automattic’s ineligible counsel aft his return, a determination that raises questions astir whether the boardroom combat is tied to the company’s ongoing suit with hosting supplier WP Engine implicit trademark disputes and claims implicit WP Engine’s deficiency of publication to the WordPress unfastened root project. (WP Engine’s ineligible squad had besides accused Mullenweg this July of destroying evidence, court filings show.)

In an interior connection shared aft the ousting and return, Mullenweg had acknowledged the chaos it caused, saying:

Last week, respective committee members formed a peculiar committee and voted to spot maine connected a permission of absence. They did this without beforehand informing and without giving maine a meaningful accidental to recognize oregon respond to their concerns earlier they acted. I was denied adjacent a little hold to consult with autarkic ineligible counsel.

I took the steps indispensable to reverse that action. I americium backmost and afloat successful complaint of the company. I americium again moving alongside you to marque our institution a success.

I besides privation to stock that we person retained Susman Godfrey LLP arsenic our caller litigation counsel. Susman Godfrey is 1 of the apical proceedings firms successful the country, and they volition beryllium protecting our company’s interests and defending america successful our ongoing litigation.

I cognize this past week has been unsettling. I admit your patience and your continued absorption connected the enactment that matters. I volition person much to stock soon, but for now, cognize that Automattic’s ngo and priorities stay unchanged.

Corrections and updates: After publication, TechCrunch updated to clarify that Waydo is the erstwhile Woop CTO. We besides added Mullenweg’s connection and confirmation.