Automattic

Internet Services

Mentions

Podcasts

Episodes

Podcast consensus

Points of consensus

▶Automattic is valued at between $7 billion and $8 billion, as cited in both podcast episodes.Apr 2026

▶The company is engaged in a significant, multi-million dollar lawsuit with WP Engine concerning trademark usage, a topic covered extensively in both sources.Apr 2026

▶Automattic has a global, location-agnostic compensation policy, paying the same salary for a role regardless of where the employee lives.Apr 2026

▶Automattic acquired Tumblr from Verizon in 2019 for approximately $3 million.Apr 2026

Points of debate

▶There is an internal strategic tension between Automattic's identity as a 'fully distributed and remote' company and its new initiative to launch an in-person AI team in New York City.Apr 2026

▶The company's portfolio performance is mixed; while WooCommerce is highly successful and drives over half of the company's revenue, other units like Tumblr are not yet profitable and are being subsidized.Apr 2026

▶A fundamental conflict exists in its business model, balancing its role as the steward of the open-source WordPress project with its position as the exclusive holder of the project's commercial license.Apr 2026

▶The ongoing lawsuit represents a core disagreement, with Automattic claiming trademark misuse by WP Engine, while WP Engine has countersued Automattic and its CEO on 21 counts, including antitrust violations.Apr 2026

Key themes

▶Aggressive Legal and Trademark DefenseApr 2026

Automattic is engaged in a high-stakes, multi-million dollar legal battle with WP Engine over the use of the WordPress and WooCommerce trademarks. The lawsuit is complex, involving personal suits against CEO Matt Mullenweg and antitrust claims, and is not expected to go to court until 2027.

This protracted legal fight highlights the immense value of the WordPress brand and Automattic's determination to control its commercial use, which could set a precedent for how open-source projects manage their commercial ecosystems.

▶Evolving Corporate CultureApr 2026

Historically a pioneer of remote-first work with over 1,700 employees in 90 countries, Automattic is now establishing a physical, in-person AI team in New York City. This move signals a potential shift in its operational strategy, even as it maintains employee-friendly policies like location-agnostic pay and long sabbaticals.

The creation of a co-located AI team suggests that Automattic believes certain strategic initiatives, particularly in cutting-edge R&D, may benefit from in-person collaboration, challenging the dogma of a purely distributed model.

▶Diversified Portfolio and Revenue StreamsApr 2026

Automattic's revenue is driven by a portfolio of products including WordPress.com and Tumblr, with its e-commerce platform, WooCommerce, being the primary engine. WooCommerce processes over $30 billion in GMV and accounts for more than half of the company's ~$500 million in annual recurring revenue.

The reliance on WooCommerce for a majority of revenue indicates a successful pivot to e-commerce, but also highlights the financial drag from unprofitable assets like Tumblr, requiring a careful balancing act of investment and subsidy across the portfolio.

▶Open Source Commercialization ModelApr 2026

Automattic operates a unique model where it is the for-profit steward of the open-source WordPress project. While the WordPress trademark was transferred to a non-profit foundation, Automattic retained the exclusive commercial license, giving it significant control over the ecosystem.

This structure creates a powerful competitive moat but also inherent tension, as seen in the WP Engine lawsuit, forcing Automattic to constantly navigate the line between fostering an open community and protecting its commercial interests.

Source episodes

Sentiment over time

Not enough data for timeline

Changes over time

2019

Automattic acquires Tumblr from Verizon for a reported price of approximately $3 million, adding a major social media platform to its portfolio.

Present Day (Operations)

The company operates as a fully distributed, remote-first organization with over 1,700 employees, generating approximately $500 million in ARR, with WooCommerce accounting for over half of that total.

Present Day (Legal)

Automattic becomes embroiled in a major lawsuit with WP Engine over trademark misuse. WP Engine countersues Automattic, the WordPress Foundation, and Matt Mullenweg personally on 21 counts.

Near Future

In a departure from its remote-first culture, Automattic announces plans to launch a new, in-person AI team in New York City.

2027

The court date for the ongoing lawsuit with WP Engine is scheduled, indicating a long and protracted legal battle ahead.

Suggested prompts

How does the outcome of the WP Engine lawsuit potentially impact Automattic's ability to control the commercial WordPress ecosystem? &nearr;What are the financial implications of subsidizing unprofitable assets like Tumblr, and how does it affect investment in core revenue drivers like WooCommerce? &nearr;Will the creation of an in-person AI team signal a broader shift away from Automattic's remote-first culture, and what challenges might this hybrid model present? &nearr;How does Automattic's location-agnostic pay policy affect its ability to attract and retain talent in high-cost-of-living tech hubs like New York City? &nearr;

Key concepts

WP Engine Lawsuit 2 ep Corporate Culture & HR 2 ep Financial Performance & Valuation 2 ep WooCommerce 2 ep Remote Work Policy 2 ep Tumblr Acquisition & Performance 1 ep Trademark Licensing Model 1 ep Product Portfolio 1 ep

Notable quotes

“There is a company in the WordPress space called WP Engine that many people thought was an official WordPress project or associated with Automatic principally because of the way they were using and misusing we believe the WordPress and WooCommerce trademarks”

Matt Mullenweg · How WordPress Became a Web Giant | Automattic Founder and CEO Matt Mullenweg

“they ended up then suing me personally, and WordPress.org and my company automatic for like a bajillion dollars, saying we're hacking antitrust 21 counts”

Matt Mullenweg · How WordPress Became a Web Giant | Automattic Founder and CEO Matt Mullenweg

“put the trademark under the foundation. Now, the compromise there was that Automatic... would retain the commercial license and the ability to sub-license that, so to sell that to others.”

Matt Mullenweg · Matt Mullenweg on the future of open source and why he’s taking a stand

“Automatic ended up buying it for a de minimis amount. I think it's been reported we bought it for like $3 million.”

Matt Mullenweg · Matt Mullenweg on the future of open source and why he’s taking a stand

Report last updated: May 21, 2026

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