Mullenweg threatens corporate takeover of WP Engine

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2024-10-01 19:00:02

Automattic CEO Matt Mullenweg has rescinded an 8% licensing deal offered to WP Engine in September, suggesting that escalating tensions between the two companies could lead to a corporate acquisition by Automattic.

In an interview with The Repository, Mullenweg said Automattic now wanted more than 8% of WP Engine’s annual revenue, or an equivalent of resources invested into the WordPress project—or a combination of both—in exchange for the use of its “WordPress” and “WooCommerce” trademarks.

“That deal’s not on the table anymore. We’re seeking more, not 8%,” Mullenweg said. “I don’t want to speculate on what the deal might be… In July it was less than 8%, it was smaller. In September it was 8%. The deal they have to do next could be taking over the company, they have no leverage.”

Mullenweg’s latest comments come as Automattic and WP Engine remain locked in a tense stand-off more than a week after he called the rival hosting company a “cancer to WordPress,” accusing it of profiting off the WordPress project and violating trademarks.