Top
Best
New

Posted by LeoPanthera 10 hours ago

Automattic's board forces CEO Matt Mullenweg into leave of absence(techcrunch.com)
272 points | 191 commentspage 2
ValentineC 12 hours ago|
I'm shocked. I always thought that Matt held the majority of the voting shares, and that the board of directors was mostly there as a rubber stamp.
ojame 12 hours ago|
Voting shares and board of directors are two different mechanisms. Just because he holds 80%+ of voting shares, doesn't mean he can control who runs the company. Shareholders can make up (elect/remove) directors on the board, the board decides who can run the company (or other officials). His vote against was likely true, but if the board is 4 seats and he only has one vote, that's 25%.

A lot of this is pretty typical, but what's interesting is what happens next. He could just remove members of the board with his 80%+ control, and build a board that backs him. I assume they have investor agreements that prevent that.

angry_octet 11 hours ago||
Regardless of who he puts on the board, directors have legal obligations to the SEC and all shareholders. If he wants that level of control he would need to take the company private, and various investor agreements probably prevent this.
Onavo 11 hours ago||
> If he wants that level of control he would need to take the company private, and various investor agreements probably prevent this.

Since when was Automatic a public listed company?

gkanai 8 hours ago|||
It is not. They did take VC funding however, which is when the board and the investor agreements came into force.
angry_octet 8 hours ago|||
I should have said: establish sole ownership.
bedroom_jabroni 11 hours ago||
Quick, somebody back up the WP Plugins repository.
bravetraveler 9 hours ago||
Enforced by checkboxes on every login form, no doubt. Less sarcastically: I hope his corporate access is thoroughly controlled; we've seen him in 'full force', before.

Article says no change for .org... this will almost surely become interesting.

c16 3 hours ago||
They should have voted on if pineapple deserves to be on pizza while they were at it. The guy had to go.
ChoosesBarbecue 12 hours ago||
I am so curious why now, what changed? The WPEngine saga was started two years ago.
nikcub 11 hours ago||
from my own observations:

a) you don't want the WPEngine case going to trial and that is coming to a decision point soon. chances are the new CEO and board settle.

b) wordpress is being absolutely obliterated by ai. work for commercial plugin authors and agencies has dried up while the platform and ecosystem see major security issues and worms exploit a large number of sites every week.

wordpress and automattic haven't responded to this well, at all. at times it is often straight denial.

founder CEO distracted by expensive lawsuit while facing existential threat to project that will require complete attention and a lot of skill to steer out of

gpm 9 hours ago|||
How is the WPEngine case going anyways?

Glancing at the docket [1] in an attempt to answer this myself... looks like the trial is scheduled for a bit over a year from now [2].. A ton of fighting over discovery... a motion asking for fairly monster sanctions for spoilation of evidence [3] (to be argued on the 30th). Claiming in [3] with what appear to be pretty solid receipts (as far as we can see through the redactions anyways) that Matt was willfully destroying communications related to the case and subject to the discovery - and Automattic's lawyers lied to the court that they preserved them (naturally Automattic's lawyers have a reply with an entirely different interpretation of events if you go look for it... but at least at a glance WPEngine seems more convincing).

[1] https://www.courtlistener.com/docket/69221176/wpengine-inc-v...

[2] https://storage.courtlistener.com/recap/gov.uscourts.cand.43...

[3] https://storage.courtlistener.com/recap/gov.uscourts.cand.43...

Anonasty 3 hours ago|||
Just side note that AI is not destroying one of the largest e-commerce platform, Woocommerce on top of Wordpress.
pluc 20 minutes ago||
Ok, Shopify is then.

If you've ever used Woocommerce, the one thing you want to do is stop using Woocommerce.

Aurornis 5 hours ago|||
Unless there's a full on scandal or emergency, boards don't force CEOs out quickly. This would have been building for years with multiple rounds of trying to de-escalate and get the situation under control.
minimaxir 12 hours ago|||
It never ended.
ChoosesBarbecue 12 hours ago||
Touché, reworded it to be clearer on what I meant :).
bsder 9 hours ago||
Probably back room deal between Wordpress board/management and WPEngine board/management. It's a safe bet that WPEngine was destroying Wordpress legally simply because their CEO doesn't suffer from verbal diarrhea and actually shuts up when the lawyers tell him to.

If you get Matt out of the way, you can ink a deal and resolve everything so that even if Matt pulls something else, there are contracts in place that can't be gotten rid of so easily.

dramm 10 hours ago||
I am surprised it has taken the Automattic board so long, just don't understand that.
zerof1l 1 hour ago||
Hopefully, WP will get better. At the moment, WP itself, its ecosystem, and community are such a cesspool. It should not be used for anything more than just basic blogging. Even then, there are better alternatives. Especially in this day and age, when an AI model can easily write you what you need. It can write you something better than the trash adware on the plugin/theme store.
pier25 12 hours ago||
It's impressive this took so long.
InsideOutSanta 4 hours ago|
I had the opposite thought: I'm impressed the board did anything at all, given how useless they are at most companies.
stef25 2 hours ago||
Breaking news big tech guy gets to do nothing and still get paid
More comments...