Automattic, the parent company behind prominent platforms like WordPress.com, Tumblr, and WooCommerce, has announced a newly constituted board of directors following a tumultuous period that saw CEO Matt Mullenweg successfully thwart an attempt to remove him. The new board, revealed to staff, features a diverse group including a best-selling author and co-founders of a notable social application.

This restructuring comes weeks after the previous board voted to place Mullenweg on leave, aiming to remove him from his leadership position. However, Mullenweg swiftly regained control within 33 hours, subsequently removing or accepting the resignations of the directors involved in the ouster attempt. His ability to do so stems from his significant voting power, reportedly controlling 84% of the company’s shares.

Among the new appointees to Automattic’s board are American science-fiction writer Hugh Howey, known for the “Silo” series; author Amy Chan; and Henry Khachatryan and Krutal Desai, co-founders of the social app IRL, which previously ceased operations after investigations revealed a significant portion of its user base consisted of bots. Additionally, new advisors have joined the company, including former Woop CTO Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah.

Mullenweg has communicated to employees that he currently holds multiple executive roles, including CEO, President, Treasurer, and Secretary, under Delaware law. He described the recent board meeting as the “most interesting in a decade” and stated that the next six months would be crucial for Automattic’s future. The company also changed its litigation counsel, retaining Susman Godfrey LLP, a move that coincides with ongoing trademark disputes and legal challenges with hosting provider WP Engine.

Key Takeaways

• Automattic CEO Matt Mullenweg successfully resisted a board attempt to oust him, regaining control within 33 hours.
• Mullenweg has appointed a new, diverse board of directors and advisors, leveraging his 84% voting share.
• The company has also changed its legal counsel amidst ongoing litigation, signaling a period of significant internal and external shifts.

Editor’s Analysis & Impact

The dramatic restructuring of Automattic’s board underscores the immense power founders can retain in privately held tech companies, even against their own directors. Mullenweg’s swift reassertion of control, backed by his substantial voting shares, highlights a governance model where founder vision can override traditional board oversight. This event could influence investor perceptions of founder-led companies, emphasizing the importance of clear governance structures and founder agreements. For Automattic, this period of internal upheaval, coupled with a change in legal counsel amid ongoing litigation, suggests a strategic pivot. The diverse new board and advisors may signal a renewed focus on product development and market expansion, but the immediate challenge will be stabilizing internal morale and demonstrating a clear path forward after such a public power struggle.

Frequently Asked Questions

Q: Why did Automattic's previous board attempt to remove CEO Matt Mullenweg?
A: The article states the previous board voted to place Mullenweg on leave in an attempt to remove him, but it does not specify the exact reasons or concerns they had.

Q: How was Matt Mullenweg able to regain control so quickly after the board's vote?
A: Matt Mullenweg controls 84% of Automattic's voting shares, which allowed him to swiftly reverse the board's decision and remove or accept the resignations of the directors involved.

Q: Who are some of the notable new members on Automattic's board?
A: The new board includes American science-fiction author Hugh Howey, author Amy Chan, and IRL co-founders Henry Khachatryan and Krutal Desai.