Signal

Sources: Automattic CEO Matt Mullenweg announces a new board and new advisers; board members include two founders of IRL and the author of the Silo book series

First reported by TechCrunch ·

The signal ●●●○ Compiled by AI from TechCrunch, Techmeme and RuntimeWire
Why you might care

Automattic's internal power struggle is resolved with the CEO consolidating control over the board.

What happened

Automattic CEO Matt Mullenweg has reconstituted the company's board following a recent internal governance conflict. The previous board had attempted to place Mullenweg on a leave of absence, but he regained control within 33 hours and subsequently removed or accepted resignations from the directors involved. The new board, announced to staff via Slack, includes American writer Hugh Howey (author of the "Silo" series), "Breakup Bootcamp" author Amy Chan, and IRL co-founders Henry Khachatryan and Krutal Desai. New advisors have also joined, such as former Whoop CTO Jaime Waydo, June co-founder Matt Van Horn, and KISSmetrics co-founder Hiten Shah. Mullenweg, who controls 84% of Automattic's voting shares, stated the company is undergoing unprecedented change and that the next six months will be critical. The company has also retained new litigation counsel, Susman Godfrey LLP.

What it means

The significant shake-up at Automattic, with CEO Matt Mullenweg replacing his entire board after a "coup attempt," signals a potential shift in how founder-led companies manage governance. By appointing individuals like a science-fiction author and co-founders of a defunct social app, Mullenweg appears to be prioritizing a specific vision or alignment over traditional corporate governance expertise. This move, enabled by his substantial voting share, could set a precedent for founders facing internal challenges, emphasizing loyalty and shared vision over established oversight mechanisms.

This board restructuring occurs amidst ongoing litigation and questions about Automattic's legal strategy, particularly concerning its dispute with WP Engine. The inclusion of advisors with strong technical and startup backgrounds, alongside a celebrated author, suggests a focus on innovation and perhaps a more unconventional approach to the company's future direction, especially as Mullenweg cited "unprecedented change" and a "singularity." The emphasis on rapid decision-making and a strong executive mandate may impact how Automattic navigates its legal battles and future product development, potentially prioritizing agility over broad consensus.

AI-written summary. May contain errors.

Sources