Automattic

Automattic Inc. is an American global distributed company most notable for WordPress.com and its contributions to the WordPress system. The company was founded in 2005.[2]

Automattic's other brands and products include Akismet, Gravatar, BuddyPress,[3] Simplenote, WooCommerce,[4] Atavist,[5] Tumblr,[6] Parse.ly,[7] Day One,[8] Pocket Casts,[9] and Beeper.[10]

History

Matt Mullenweg co-founded the open-source blogging platform WordPress in 2003. Two years later, he founded Automattic to monetize the platform.[11]

Initially the company developed commercial products related to WordPress, including WordPress.com for WordPress-managed hosting and the spam filtering service Akismet.[12] Toni Schneider, a former executive at Yahoo, became chief executive officer (CEO) in 2006.[12][13] Automattic acquired Gravatar in 2007, then IntenseDebate and PollDaddy in 2008.[14][15]

Automattic transferred the WordPress source code and trademarks to the WordPress Foundation in 2010 and it also acquired the prompt generator Plinky.[16][17] In 2011, the company created Jetpack, a WordPress extension.[15]

Automattic acquired Lean Domain Search and CloudUp in 2013.[18][19] In 2014, Automattic raised $160 million in a venture round, acquired Longreads, and Mullenweg became CEO.[20][12] Schneider remained as an adviser while Mullenweg led product development.[13] Automattic acquired WooCommerce and relaunched the hosted version of its content manager, WordPress.com, in 2015.[12][21] This version replaced PHP with JavaScript and simplified administrative design. Automattic also launched a WordPress application with Mac support.[21]

Automattic's remote working culture was the topic of a participative journalism project by Scott Berkun, resulting in the 2013 book The Year Without Pants: WordPress.com and the Future of Work.[22]

On November 21, 2016, Automattic managed the launch and development of the .blog gTLD.[23]

In 2017, Automattic announced that it would close its San Francisco office, which had served as an optional co-working space for its employees, alongside similar spaces near Portland, Maine and in Cape Town, South Africa.[24]

Automattic acquired Atavist Magazine in 2018.[25] The following year, it raised $300 million in a Series D funding round led by Salesforce Ventures in 2019, giving it a $3 billion valuation. The 2019 round of funding brought the total amount raised by Automattic to more than $600 million since its founding.[26] Verizon sold Tumblr to Automattic in August 2019 for approximately $3 million.[27][28] As part of the acquisition, Automattic retained approximately 200 Tumblr staffers.[28] The same year, Google and Automattic partnered to create Newspack, a publishing platform for local news organizations. Google, the Lenfest Institute for Journalism, the Knight Foundation, and Civil Media invested $2.2 million in the project.[29][30]

The COVID-19 pandemic boosted Automattic's growth as more businesses moved online.[31] In August 2020, Automattic released P2, a collaboration platform with a blog-like interface, designed for asynchronous distributed teams.[32] That year, Automattic had approximately 1,200 employees.[33] By 2021, Automattic's valuation reached $7.5 billion. At the time, the WordPress open-source software was powering 28 million websites, or 40 percent of all websites on the Internet that used a content management system (CMS).[34][35] Automattic acquired the journaling app Day One and Frontity, a React framework for WordPress website development, and podcast streaming service Pocket Casts in July 2021.[36][37][38] The following year, it acquired Parse.ly in its largest deal to date.[39] The company launched the Jetpack AI Assistant for WordPress in 2023.[40]

Automattic acquired multiservice messaging apps Texts in 2023.[41] The company purchased messaging app Beeper, grammar checking tool Harper, and WordPress artificial intelligence plugin maker WPAI in 2024.[42][43][44] Automattic was included in the 2024 Forbes Cloud 100 list.[45] In February 2024, it was reported that the company would begin selling user data from Tumblr and WordPress.com to Midjourney and OpenAI.[46]

On April 2, 2025, the company announced a restructuring that resulted in the layoff of 16% of its workforce, or 281 positions.[47]

WP Engine dispute and lawsuit

Towards the end of September 2024, Automattic was involved in a controversy with WP Engine, in which Automattic claimed WP Engine used the WordPress trademark in a way that confused consumers. One of the main claims made is that WP Engine does not pay trademark royalties to the WordPress Foundation.[48] Over 8 percent of Automattic's staff resigned after CEO Matt Mullenweg offered $30,000 or six months' salary as severance to those who disagreed with his stance.[49] The next month, Mullenweg made another offer, this time of nine months' salary.[50]

Corporate affairs

As of December 2024, Automattic's board consisted of the following directors:[51]

  • Matt Mullenweg (founder and CEO of Automattic)
  • Phil Black (co-founder of True Ventures venture capital firm)
  • Toni Schneider (former CEO of Automattic, 2006–2014)
  • Ann E. Dunwoody (retired U.S. army general)
  • Susan Decker (former President of Yahoo! Inc.)

References

  1. About Us Automattic, July 23, 2005, retrieved 2025-04-08^
  2. Chris Morrison. How doing everything wrong turned Automattic into a multibillion dollar media powerhouse TechCrunch, 2021-10-19, retrieved 2024-03-31^
  3. Matt Mullenweg. A New Home for the WordPress Trademark ma.tt, 2010-09-09, retrieved 2018-01-24^
  4. Mark Forrester. WooThemes Joins Automattic The WooCommerce Blog, 2015-05-19, retrieved 2018-01-24^
  5. Automattic, Parent Company of WordPress.com, Acquires Atavist Publishing Platform and Award-Winning Magazine PR Newswire, 2018-06-21, retrieved 2018-06-22^
  6. Sarah Gooding. Automattic Acquires Tumblr, Plans to Rebuild the Backend Powered by WordPress wptavern.com, 2019-08-13, retrieved 2024-12-12^
  7. Matt Mullenweg. Parse.ly & Automattic ma.tt, 2021-02-08, retrieved 2021-02-09^
  8. Sarah Perez. WordPress.com owner Automattic acquires journaling app Day One TechCrunch, 2021-06-14, retrieved 2021-06-14^
  9. Eli Budelli. Popular Podcast App Pocket Casts Joins Automattic WordPress.com, 2021-07-16, retrieved 2024-12-12^
  10. David Pierce. Beeper was just acquired by Automattic, which has big plans for the future of messaging The Verge, 2024-04-09, retrieved 2024-04-09^
  11. Paul Sawers. Matt Mullenweg calls WP Engine a 'cancer to WordPress' and urges community to switch providers TechCrunch, September 22, 2024, retrieved November 1, 2024^
  12. Chris Morrison. How doing everything wrong turned Automattic into a multibillion dollar media powerhouse TechCrunch, October 19, 2021, retrieved November 1, 2024^
  13. Christina Farr. WordPress creator Matt Mullenweg to take over Automattic as CEO VentureBeat, January 13, 2014, retrieved November 1, 2024^
  14. Matt Burns. GitHub Co-Founder And CEO Tom Preston-Werner To Speak At Disrupt SF TechCrunch, August 19, 2013, retrieved March 21, 2025^
  15. Chris Morrison. How doing everything wrong turned Automattic into a multibillion dollar media powerhouse TechCrunch, October 19, 2021, retrieved November 1, 2024^
  16. Jon Brodkin. Automattic demanded web host pay $32M annually for using WordPress trademark Ars Technica, October 3, 2024, retrieved November 8, 2024^
  17. Leena Rao. Automattic Buys Up Thing Labs' Plinky To Help Bloggers Overcome Writer's Block TechCrunch, June 25, 2010, retrieved March 21, 2025^
  18. Meghan Kelly. WordPress to get collaborative post editing after CloudUp acquisition VentureBeat, September 25, 2013, retrieved March 19, 2025^
  19. Frederic Lardinois. Automattic Acqui-Hires Lean Domain Search To Improve Its Domain Registration Service TechCrunch, July 15, 2013, retrieved November 1, 2024^
  20. Lora Kolodny. Automattic Valued at $1.16 Billion, Says It Doesn't Need IPO The Wall Street Journal, May 5, 2014, retrieved March 5, 2025^
  21. Harrison Weber. Automattic revamps and open-sources WordPress.com VentureBeat, November 23, 2015, retrieved November 1, 2024^
  22. Scott Berkun. The Year Without Pants: WordPress.com and the Future of Work Wiley, 10 September 2013^
  23. About Knock Knock, WHOIS There .blog, 2016-04-13, retrieved 2018-01-24^
  24. Oliver Staley. Wordpress's owner is closing its San Francisco office because its employees never show up Quartz, 2017-06-12, retrieved 2019-10-20^
  25. Benjamin Mullin. WordPress.com Owner Buys Atavist, Maker of Subscription-Offering Publishing Software The Wall Street Journal, June 21, 2018, retrieved November 1, 2024^
  26. Paul Sawers. WordPress.com parent Automattic raises $300 million from Salesforce at a $3 billion valuation VentureBeat, September 19, 2019, retrieved November 1, 2024^
  27. Rachel Sandler. Verizon To Sell Tumblr To Wordpress Owner Forbes, August 12, 2019, retrieved November 1, 2024^
  28. Rachel Siegel. Tumblr once sold for $1.1 billion. The owner of WordPress just bought the site for a fraction of that. The Washington Post, August 13, 2019, retrieved November 1, 2024^
  29. Matt Southern. Google is Partnering With WordPress to Develop a News Publishing Platform Search Engine Journal, January 14, 2019, retrieved March 11, 2025^
  30. Google Partners Automattic, WordPress to Create 'Newspack' Publishing Platform for Local News Publishers Gadgets 360, January 15, 2019, retrieved March 19, 2025^
  31. Chris Morrison. How doing everything wrong turned Automattic into a multibillion dollar media powerhouse TechCrunch, October 19, 2021, retrieved November 1, 2024^
  32. Paul Sawers. Automattic launches P2, a WordPress-powered collaboration tool for remote teams VentureBeat, August 6, 2020, retrieved November 1, 2024^
  33. Agam Shah. Working Remotely Requires Cultural Change, Executives Say The Wall Street Journal, March 12, 2020, retrieved March 11, 2025^
  34. Chris Morrison. Can social and e-commerce transform the future of the open web? TechCrunch, October 19, 2021, retrieved November 1, 2024^
  35. Chris Morrison. There’s nothing Automattic about balancing commercial growth with an open source developer community TechCrunch, October 19, 2021, retrieved November 1, 2024^
  36. Sarah Perez. WordPress.com owner Automattic acquires journaling app Day One TechCrunch, June 14, 2021, retrieved March 19, 2025^
  37. Paul Sawers. Automattic acqui-hires the team behind Frontity, a React framework for WordPress VentureBeat, August 30, 2021, retrieved November 1, 2024^
  38. Ashley Carman. Automattic, owner of Tumblr and WordPress.com, buys podcast app Pocket Casts/A new home for the popular podcast app The Verge, July 16, 2021, retrieved May 27, 2025^
  39. Allison Prang. WordPress VIP Buying Content Analytics Firm Parse.ly The Wall Street Journal, February 8, 2021, retrieved March 11, 2025^
  40. Ivan Mehta. Automattic launches an AI writing assistant for WordPress TechCrunch, June 7, 2023, retrieved November 1, 2024^
  41. David Pierce. Automattic is acquiring Texts and betting big on the future of messaging The Verge, October 24, 2023, retrieved November 1, 2024^
  42. David Pierce. Beeper was just acquired by Automattic, which has big plans for the future of messaging The Verge, April 9, 2024, retrieved November 1, 2024^
  43. Sarah Perez. WordPress.com owner Automattic snaps up grammar checker Harper TechCrunch, November 21, 2024, retrieved December 2, 2024^
  44. Ivan Mehta. Automattic acquires WPAI, a startup that makes AI products for WordPress TechCrunch, December 9, 2024, retrieved December 10, 2024^
  45. Forbes Cloud 100 No. 71: Automattic Forbes, August 6, 2024, retrieved December 2, 2024^
  46. Samantha Cole. Tumblr and WordPress to Sell Users' Data to Train AI Tools 404 Media, 2024-02-27, retrieved 2024-02-28^
  47. Sarah Perez. WordPress maker Automattic lays off 16% of staff TechCrunch, 2025-04-02, retrieved 2025-05-17^
  48. Ivan Mehta. The WordPress vs. WP Engine drama, explained TechCrunch, 2024-09-26, retrieved 2024-09-27^
  49. Emma Roth. WordPress co-founder is paying employees to leave if they disagree with him The Verge, 2024-10-04, retrieved 2024-10-04^
  50. Samantha Cole. Employees Describe an Environment of Paranoia and Fear Inside Automattic Over WordPress Chaos 404 Media, 2024-10-17, retrieved 2024-10-18^
  51. Board of Directors Automattic, 2018-09-25, retrieved 2024-12-12^