Automattic Boardroom Overhaul: New Leadership Takes Helm After Failed CEO Ouster

**Key Takeaways:**

• Automattic CEO Matt Mullenweg has dramatically reshaped the company’s board following a swift and unsuccessful attempt by previous directors to oust him.
• The new board features an unconventional mix, including science fiction authors and the co-founders of the controversial, now-defunct social app IRL, raising eyebrows in the tech community.
• The board shake-up coincided with significant executive departures and a change in legal counsel, hinting at deeper internal conflicts potentially linked to ongoing litigation, such as Automattic’s lawsuit against WP Engine.

In a stunning display of corporate power, Automattic CEO Matt Mullenweg has entirely reconstituted the company’s board of directors, just weeks after surviving a direct challenge to his leadership. The parent company of WordPress.com, Tumblr, and WooCommerce, Automattic was plunged into an internal governance crisis earlier this month when its previous board attempted to place Mullenweg on leave and remove him from his post. However, Mullenweg, leveraging his substantial voting control, retook the reins a mere 33 hours later, swiftly moving to dismiss or accept the resignations of the directors involved in the “coup attempt.”

The dust may be settling on the boardroom drama, but the composition of Mullenweg’s newly minted board is now sparking fresh conversations. Revealed to staff via the company’s Slack announcements channel, the eclectic group includes names from beyond the typical tech executive sphere, a move that underscores Mullenweg’s singular vision for Automattic’s future. Mullenweg himself confirmed the changes to TechCrunch, marking the latest twist in a saga that has captivated the tech industry.

The Coup and the Counter-Coup: Mullenweg’s Swift Reassertion of Power

The internal strife at Automattic came to a head when the company’s original board voted to put Mullenweg on paid leave. The attempt to depose the founder and CEO of a company he built into a web giant was met with an equally swift and decisive response. Mullenweg, who controls a commanding 84% of Automattic’s voting shares, activated his authority to reverse the decision. His period of “absence” lasted precisely “33 hours and 20 minutes,” a testament to his rapid reassertion of control.

Following his triumphant return, Mullenweg initiated a significant overhaul of Automattic’s leadership structure. Several key figures from the previous board and executive team departed. Toni Schneider, a founding CEO of Automattic and now CEO of Bluesky, resigned from his board position. General Ann Dunwoody was explicitly removed by Mullenweg, and board member Sue Decker also tendered her resignation. The executive suite saw equally dramatic changes, with Automattic CFO Mark Davies – who had been slated to become interim CEO during Mullenweg’s proposed leave – and Chief Legal Officer Andy Missan both being let go. This sweeping purge underscores Mullenweg’s determination to eliminate any potential challenges to his authority and to surround himself with a team unequivocally aligned with his leadership.

While the previous board never publicly disclosed their reasons for attempting to oust Mullenweg, the CEO himself did not shy away from labeling the event a “coup attempt” on social media. His subsequent tweet, “Founder advice: If you don’t have a coup attempt every few years, you’re not hiring strong enough leaders,” offered a glimpse into his perspective on the high-stakes corporate maneuverings.

An Eclectic Assembly: The New Automattic Board

The newly appointed board members and advisors reflect a distinctly non-traditional approach to corporate governance. Sources confirmed to TechCrunch, and Mullenweg later corroborated, that the fresh faces include:

• **Hugh Howey:** A best-selling American writer, famously known for his “Silo” series of science-fiction novels. Howey and Mullenweg share a connection through their 2018 trek along Spain’s Camino de Santiago, suggesting a personal rapport beyond typical corporate affiliations.
• **Amy Chan:** Author of “Breakup Bootcamp,” Chan’s involvement further broadens the board’s scope beyond traditional tech or finance backgrounds. Her recent social media engagement with Mullenweg regarding Automattic’s AI site builder, Spacefast, indicates a level of prior interaction.
• **Henry Khachatryan:** Co-founder of the now-defunct social app IRL. Mullenweg described Khachatryan as a “founder and builder,” noting his past collaborations with the late tech writer Om Malik and his work as a website builder for journalist Nick Bilton.
• **Krutal Desai:** The other co-founder of IRL, alongside Khachatryan.

The inclusion of IRL’s co-founders, Khachatryan and Desai, is particularly noteworthy and has drawn considerable attention. IRL, a social app that garnered significant venture capital, ultimately shut down amidst revelations that its reported user base was largely composed of bots. This scandal led to legal battles, with the co-founders later suing SoftBank and other investors who had previously sued them for securities fraud. Their appointment to Automattic’s board introduces an element of controversy and an unusual corporate governance background.

In addition to the new board members, Mullenweg has brought on a roster of new advisors: former Woop CTO Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah. These additions suggest a focus on product, growth, and technical expertise, perhaps balancing the more unconventional board appointments.

Mullenweg’s Mandate and the Legal Undercurrents

In his communication to staff, Mullenweg reportedly emphasized his consolidated authority, stating, “for purposes of Delaware law, I am the CEO, President, Treasurer, and Secretary.” This declaration leaves no room for ambiguity regarding who is in charge. He also noted that the attempted firing had brought in “many amazing supporters,” underscoring a rallying effect around his leadership. The CEO described the recent board meeting as “the most interesting board meeting in a decade (since the Woo acquisition),” hinting at the momentous nature of the changes being implemented.

Upon publication, Mullenweg provided an additional statement, reinforcing the gravity of the moment: “We are living through times of unprecedented change, possibly a singularity. The next six months will determine the next 20 years of Automattic.” This reflects a belief that Automattic, under his renewed leadership, is at a critical juncture, facing transformative challenges and opportunities, likely related to the rapidly evolving tech landscape, particularly in AI and web infrastructure.

A significant development coinciding with the board reshuffle was Mullenweg’s decision to replace Automattic’s legal counsel. This move raises pertinent questions about whether the boardroom struggle is intertwined with the company’s ongoing, high-profile lawsuit against hosting provider WP Engine. The lawsuit involves trademark disputes and claims regarding WP Engine’s alleged lack of contribution to the WordPress open-source project. Furthermore, court filings from July showed WP Engine’s legal team accusing Mullenweg himself of destroying evidence, adding another layer of complexity to the legal landscape.

Mullenweg directly addressed the unsettling nature of the past week in an internal message to employees, acknowledging the chaos but asserting his control and outlining his immediate actions:

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 shift to Susman Godfrey LLP, a firm renowned for high-stakes litigation, strongly suggests that Automattic is gearing up for aggressive legal defense and offense, potentially indicating that the internal board struggle might have had deeper roots in, or significant implications for, the company’s ongoing legal challenges.

The Bottom Line

Matt Mullenweg has not just survived a challenge to his leadership; he has emerged from it with an even firmer grip on Automattic, reshaping its governance in his own image. The appointment of an unconventional board, complete with authors and founders from a scandal-ridden startup, signals a deliberate departure from traditional corporate structures, likely reflecting Mullenweg’s vision for navigating what he terms “unprecedented change.” While Mullenweg has consolidated power and stabilized the immediate crisis, the opaque reasons behind the initial ouster attempt, combined with the significant executive and legal team changes, suggest underlying tensions that may yet play out. Automattic, a foundational pillar of the internet, is now unequivocally on a path charted by its founder, with a new team assembled to face the “next 20 years.”