Automattic rebuilds board after failed attempt to oust Mullenweg

Automattic CEO Matt Mullenweg has installed a new board weeks after the company’s previous directors tried, and failed, to remove him. The board, announced to staff Friday, is an eclectic mix: best-selling science-fiction author Hugh Howey, “Breakup Bootcamp” author Amy Chan, and Henry Khatachryan and Krutal Desai, co-founders of the now-defunct social app IRL. IRL shut down after investigations found that nearly all of its user base was made up of bots; its founders, including CEO Abraham Shafi, were later sued by SoftBank for securities fraud before countersuing SoftBank and other investors. A slate of new advisers also joined Automattic, including Curio Studio co-founder Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah.

The reshuffle is the latest turn in a governance fight at Automattic, the parent company of WordPress.com, Tumblr, and WooCommerce. Earlier this month, the previous board voted to place Mullenweg on leave in an attempt to remove him; he retook control just 33 hours and 20 minutes later, removing or accepting the resignations of the directors involved. Mullenweg controls 84% of Automattic’s voting shares, which he used to replace the board — which never publicly explained why it had tried to oust him. “We had the most interesting board meeting in a decade (since the Woo acquisition),” Mullenweg said of the episode.

The shake-up also swept up other executives. Founding CEO Toni Schneider, now CEO of Bluesky, resigned from the board; Mullenweg removed retired general Ann Dunwoody; and board member Sue Decker resigned as well. Separately, Mullenweg let go CFO Mark Davies, who had been slated to become interim CEO, and Chief Legal Officer Andy Missan.

Mullenweg also replaced Automattic’s legal counsel with Susman Godfrey LLP, a move that raises questions about whether the boardroom fight is connected to the company’s ongoing trademark lawsuit with hosting provider WP Engine — whose lawyers accused Mullenweg in July of destroying evidence, according to court filings. In a message to staff after his return, Mullenweg said board members had voted to place him on leave without advance warning and without letting him consult outside legal counsel before acting, and told employees the company’s mission and priorities remain unchanged.

Why it matters

The episode underscores how much control a founder’s supermajority voting stake can exert over corporate governance, even at a company facing an active lawsuit over WordPress’s trademark and open-source obligations.