Quick Overview
This episode of The Code Report by Fireship covers the September 2026 boardroom conflict at Automattic, where co-founder Matt Mullenweg was briefly removed as chief executive officer. The video breaks down the corporate timeline of the attempted ouster, the swift reversal by the majority shareholder, and the resulting financial liabilities for the company.
Key Points
- 1.Automattic's board of directors voted to remove co-founder Matt Mullenweg as chief executive officer while he was returning from Burning Man.
- 2.Because Matt Mullenweg controls 84 percent of Automattic's voting power, he replaced the board and regained his role as chief executive officer within 33 hours.
- 3.During the brief leadership change, interim CEO Mark Davies and Chief Legal Officer Andy Missan executed reciprocal severance agreements with golden parachute clauses.
- 4.Upon returning to power, Mullenweg terminated both executives, triggering severance liabilities for Automattic exceeding eight million dollars.
- 5.The internal board dispute occurred against the backdrop of an 83 percent valuation decline by BlackRock and an ongoing legal dispute with WP Engine.
Summary
Earlier in the month, the board of directors at Automattic attempted an unexpected leadership coup by removing company co-founder Matt Mullenweg from his position as chief executive officer. Automattic, the company behind WordPress.com, Tumblr, and WooCommerce, saw its board elevate Chief Financial Officer Mark Davies to interim CEO. Employees were informed that the board had full confidence in Davies, while Mullenweg was forced into a leave of absence without having enough time to consult legal counsel regarding the resolution.
The attempted takeover occurred following Mullenweg's annual trip to Burning Man, coinciding with an ongoing high-profile dispute between Automattic and WP Engine. WP Engine, backed by private equity firm Silver Lake, had been embroiled in legal battles and trademark disputes with WordPress and Automattic, including accusations that Mullenweg had destroyed messaging evidence. In addition to the legal drama, BlackRock had previously marked down its valuation of Automattic shares by 83 percent, dropping the company's implied enterprise value to approximately 1.26 billion dollars.
After receiving only 50 minutes of notice before the board meeting, Mullenweg requested additional time to review the proposal with independent counsel, but the board denied the request. Board members Sue Decker, retired General Ann Dunwoody, and Toni Schneider supported the ouster alongside Davies. In response, Mullenweg took to internal communications and Reddit, criticizing the move and asserting that the board could not permanently remove him because he retained 84 percent of Automattic's voting stock. He also publicly posted about his intent to move personal operations and sysadmin infrastructure to WordPress.org servers.
Within 33 hours and 20 minutes, Mullenweg exercised his voting rights to remove the board members who orchestrated the coup and reinstated himself as chief executive officer. However, during the brief window in which Davies and Chief Legal Officer Andy Missan held executive power, both drafted and approved reciprocal severance agreements. These contracts included golden parachutes granting 12 months of salary, extended health benefits, and accelerated equity vesting if either executive were dismissed.
Upon regaining control of Automattic, Mullenweg promptly fired Davies and Missan, triggering the terms of the newly signed severance packages. Consequently, the brief leadership transition cost Automattic approximately 8.15 million dollars in combined severance payouts. Following the resolution, Automattic officially confirmed Mullenweg's return to the CEO chair, while employees remained largely uninformed about the full details behind the incident.
The Ouster of Matt Mullenweg
While Matt Mullenweg was returning from Burning Man, the board of directors at Automattic, including board members Sue Decker, Ann Dunwoody, and former CEO Toni Schneider, voted to place him on a paid leave of absence. Chief Financial Officer Mark Davies was promoted to interim chief executive officer with only 50 minutes of advance notice given to Mullenweg before the board meeting took place.
The 33-Hour Power Struggle
Following the board's vote, Mullenweg took to internal Slack channels and public forums to push back against the decision and express his intention to reclaim control. Because Mullenweg holds 84 percent of Automattic's voting power, he exercised his shareholder rights to dismiss the dissenting board members and restore himself as chief executive officer after 33 hours and 20 minutes.
The Eight Million Dollar Golden Parachute
During the brief period while Mullenweg was deposed, interim CEO Mark Davies and Chief Legal Officer Andy Missan signed reciprocal severance agreements guaranteeing 12 months of base salary, health coverage, and immediate stock vesting upon termination. When Mullenweg reclaimed the chief executive position, he immediately dismissed both executives, triggering over 8.15 million dollars in severance obligations.
Automattic's Turbulent Context and Code Review Tooling
The executive clash coincided with broader turmoil at Automattic, including an 83 percent valuation write-down from investor BlackRock and ongoing legal battles against WP Engine and private equity firm Silver Lake. The video concludes with a showcase of Greptile, an AI code review tool that runs full pull request branches inside sandboxes to detect runtime issues.
The Bottom Line
The video documents the rapid failed boardroom coup against Matt Mullenweg at Automattic, illustrating how voting share control allows a founder to override board decisions. It establishes how interim executives secured an 8.15 million dollar severance payout during their 33 hours in command before being fired. While Mullenweg successfully reclaimed the chief executive position, the video highlights that internal employee frustration and the broader legal fight with WP Engine remain unresolved.
FAQ
What is Automattic and what products does the company manage?
Automattic is a technology company founded by Matt Mullenweg that operates WordPress.com, WooCommerce, Tumblr, Jetpack, Pocket Casts, and Day One, while also contributing heavily to the open-source WordPress project.
Why was Matt Mullenweg temporarily removed from his role as chief executive officer of Automattic?
The Automattic board of directors voted to place Matt Mullenweg on a paid leave of absence following internal tensions, an 83 percent valuation decline from investor BlackRock, and ongoing legal conflicts involving WP Engine.
How was Matt Mullenweg able to regain control of Automattic within thirty-three hours?
Mullenweg holds 84 percent of Automattic's voting power, allowing him to legally replace the dissenting board of directors with new members who reinstated him as chief executive officer.
How did the interim executives at Automattic secure an eight million dollar severance package?
During the 33-hour ouster, interim CEO Mark Davies and Chief Legal Officer Andy Missan executed reciprocal golden parachute severance agreements that granted them 12 months of salary, health insurance, and accelerated equity vesting upon termination.
What role did private equity firm Silver Lake play in the events surrounding Automattic and WP Engine?
Silver Lake is the private equity firm backing WP Engine, which was involved in an escalating legal and trademark conflict with Matt Mullenweg and Automattic leading up to the boardroom dispute.
Worth watching for
Software developers, tech industry professionals, and corporate governance enthusiasts following developments in open source software and startup management.
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