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Automattic founder, Matt Mullenweg

Source: Automattic

Matt Mullenweg, who turned 40 in January, has now spent more than half his life working on WordPress. He’s never had such an insane two weeks.

WordPress, best known as a leading content management system, has hundreds of millions of sites currently using its templates, tools and plugins. But the WordPress universe is a complicated mishmash of open-source products, nonprofits, for-profit companies, trademarks and licenses.

The typically quiet but extremely important part of the internet — WordPress powers roughly 40% of all websites — has suddenly emerged as a major source of tech industry drama, threatening to upend an ecosystem that’s long been viewed, from the outside at least, as collegial, thanks to its longevity and the various fun-loving camps and learning sessions it hosts every year.

While WordPress’ technology is open source, meaning anyone can install it and use it for free, Mullenweg is also founder and CEO of Automattic, a venture-backed startup valued at $7.5 billion, as of 2021. WordPress.com is Automattic’s central businesses, and individuals and companies pay anywhere from $4 a month to over $25,000 a year for services like ad products, security, customer support and inventory management.

The saga that burst into public view in September featured the normally mild-mannered Mullenweg as its central character in a battle with WP Engine, one of the leading providers of WordPress hosting. Silicon Valley private equity firm Silver Lake bought a majority stake in WP Engine in 2018, investing $250 million and obtaining three board seats.

“I’ve been doing WordPress for 21 years, I have good relationships with every other company in the world,” Mullenweg said in an interview this week with CNBC.

WP Engine’s offense, according to Mullenweg and a cease-and-desist letter his attorneys sent to the company on Sept. 23, revolves around years of trademark violations and WP Engine’s claim that it’s bringing “WordPress to the masses.”

“We at Automattic have been attempting to make a licensing deal with them for a very long time, and all they have done is string us along,” Mullenweg wrote in a Sept. 26 post on his personal website, ma.tt. “Finally, I drew a line in the sand, which they have now leapt over.”

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Since then, the matter has escalated on an almost daily basis. WordPress took the drastic step of banning WP Engine from using the WordPress resources necessary to serve its customers, which preceded a lawsuit filed on Wednesday by WP Engine against Mullenweg and Automattic. Mullenweg then put out another post, calling WP Engine’s suit “meritless,” and announcing that he’d hired Neal Katyal, former U.S. acting solicitor general, for legal defense.

Tomasz Tunguz, a venture capitalist and founder of Theory Ventures, says the conflict speaks to the perpetual challenge of open-source software.

“What are the legitimate ways of monetizing open source and does the commercial entity created by the authors — how much control should they have with the commercialization efforts?” Tunguz said. In this case, “hundreds of millions in revenue is at stake between the two,” he added.

‘Silver Lake doesn’t give a dang’

In Mullenweg’s telling of the brouhaha, the battle has been years in the making. He’s been actively trying to strike a deal since January and finally got fed up, he said.

But to the outside world, it all felt very sudden. Mullenweg first referenced the matter in public on Sept. 17, in a blog post ahead of WordCamp, the largest annual gathering in the U.S. of WordPress users. The four-day event took place in Portland, Oregon, beginning on Sept. 17.

In the post, Mullenweg criticized WP Engine for not contributing enough back to the WordPress ecosystem. He said that Automattic contributed 3,786 hours per week to WordPress.org, (“not even counting me!”) compared to 47 hours for WP Engine.

For businesses and developers considering who they want to support, Mullenweg had this message: “Silver Lake doesn’t give a dang about your Open Source ideals. It just wants a return on capital.”

A Silver Lake spokesperson said WP Engine was handling all inquiries. A WP Engine representative referred to the company’s complaint against Automattic and Mullenweg, filed on Oct. 2. The spokesperson highlighted the introduction of the complaint.

“This is a case about abuse of power, extortion, and greed,” the filing begins. “The misconduct at issue here is all the more shocking because it occurred in an unexpected place — the WordPress open source software community built on promises of the freedom to build, run, change, and redistribute without barriers or constraints, for all. Those promises were not kept, and that community was betrayed, by the wrongful acts of a few—[Matt Mullenweg and Automattic]—to the detriment of the many, including WPE.”

On Sept. 20, three days after Mullenweg’s initial post, the WordPress founder showed he wouldn’t be backing down.

In his keynote, at an event that attracted an estimated 1,500 WordPress fanatics, Mullenweg warned the audience upfront that it “might be one of my spiciest WordCamp presentations ever.” After reading out his prior blog post, Mullenweg took swipes at Silver Lake, even naming a partner at the firm, Lee Wittlinger, as the man behind WP Engine, comparing him to a “schoolyard bully.”

Prior to taking questions, Mullenweg said of WP Engine’s presence at WordCamp, “they’re not going to be at future ones, I don’t think.”

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He wasn’t done.

The next day, in a post titled, “WP Engine is not WordPress,” Mullenweg wrote that even his mother didn’t know the difference, and he said WP Engine is “profiting off of the confusion” and “needs a trademark license to continue their business.”

His mom wasn’t the only one confused.

Bob Perkowitz, president of environmental nonprofit ecoAmerica, told CNBC that he’s known Mullenweg for 16 years and is even an investor in Automattic. For a number of his organizational and personal websites, Perkowitz said he’s long been a WP Engine customer. Tuning in remotely, he heard Mullenweg’s WordCamp presentation.

“I always thought that was part of WordPress,” Perkowitz told CNBC in an interview, referring to WP Engine. “They’re misleading, and they don’t contribute to the community.”

Perkowitz said he’s having his website administrator migrate all of the websites to different hosting companies.

Following Mullenweg’s presentation, WP Engine sent Automattic’s legal chief a cease-and-desist letter on Sept. 23, due to what the company called Mullenweg’s self-described “scorched earth nuclear approach.” The letter said Mullenweg had demanded a payout of a “very large sum of money” before his WordCamp keynote, and WP Engine didn’t pay up.

The letter said Mullenweg’s “false, misleading, and disparaging statements are legally actionable.”

Two days later, Mullenweg wrote on the WordPress.org site that WP Engine had been banned, meaning it “no longer has free access to WordPress.org’s resources.” Mullenweg encouraged WP Engine’s thousands of customers to contact the company “and ask them to fix it.”

WordPress then temporarily unblocked WP Engine and gave it until Oct. 1 to agree to terms of a licensing agreement, which Mullenweg made public. The crux of the deal is that WP Engine would agree to a royalty fee of 8% of monthly revenue to Automattic or commit 8% of revenue “in the form of salaries of WP Engine employees” working on WordPress features for WordPress.org.

No deal was made. The ban went into effect Oct. 1.

To the universe of WP Engine customers, Mullenweg’s actions were harsh and clumsy. Mullenweg says that what his critics don’t understand is how long he’s been trying to come to a deal.

“They’ve been delaying forever,” Mullenweg told CNBC. He decided, “I’m going to finally start talking about the evil stuff you’re doing unless you talk to me,” he said.

Fighting back

Far from negotiating, WP Engine on Wednesday filed its explosive lawsuit against Mullenweg and Automattic.

WP Engine accuses Mullenweg of slander and libel due to his public comments and says the WordPress founder has numerous conflicts of interest in how he runs the community and his company, give the open-source nature of the technology.

“Over the last two weeks, Defendants have been carrying out a scheme to ban WPE from the WordPress community unless it agreed to pay tens of millions of dollars to Automattic for a purported trademark license that WPE does not even need,” the lawsuit says. “Defendants’ plan, which came without warning, gave WPE less than 48 hours to either agree to pay them off or face the consequences of being banned and publicly smeared.”

Following WP Engine’s demands for a jury trial in its 61-page lawsuit, Mullenweg fired back, describing the complaint as “baseless” and “flawed, start to finish.”

On his personal website, Mullenweg acknowledged that the ordeal was causing a big internal clash at his company.

“It became clear a good chunk of my Automattic colleagues disagreed with me and our actions,” Mullenweg wrote.

He says he made the decision to offer buyout packages for anyone who resigned before early afternoon Thursday, offering $30,000 or six months of salary, whichever is higher. Anyone who took the deal wouldn’t be eligible to “boomerang,” a term for getting rehired.

Mullenweg said that 159 people, or 8.4% of the workforce, took the offer while the 91.6% who opted to stay turned down a collective $126 million.

Mullenweg concluded by saying, “now I feel much lighter.”

“I’m grateful and thankful for all the people who took the offer, and even more excited to work with those who turned down $126M to stay,” Mullenweg wrote. “As the kids say, LFG!”

Mullenweg may be openly enthusiastic and grateful for the employees he still has on board, but the WordPress community is a mess. Many WP Engine customers are suffering, and Automattic is gearing up for a legal fight against a private equity firm with over $100 billion in assets.

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FTC asks to delay Amazon Prime deceptive practices case, citing staffing shortfalls

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FTC asks to delay Amazon Prime deceptive practices case, citing staffing shortfalls

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The Federal Trade Commission asked a judge in Seattle to delay the start of its trial accusing Amazon of duping consumers into signing up for its Prime program, citing resource constraints.

Attorneys for the FTC made the request during a status hearing on Wednesday before Judge John Chun in the U.S. District Court for the Western District of Washington. Chun had set a Sept. 22 start date for the trial.

Jonathan Cohen, an attorney for the FTC, asked Chun for a two-month continuance on the case due to staffing and budgetary shortfalls.

The FTC’s request comes amid a push by the Trump administration’s Department of Government Efficiency to reduce spending. DOGE, which is led by tech baron Elon Musk, has slashed the federal government’s workforce by more than 62,000 workers in February alone.

“We have lost employees in the agency, in our division and on our case team,” Cohen said.

Chun asked Cohen how the FTC’s situation “will be different in two months” if the agency is “in crisis now, as far as resources.” Cohen responded by saying that he “cannot guarantee if things won’t be even worse.” He pointed to the possibility that the FTC may have to move to another office “unexpectedly,” which could hamper its ability to prepare for the trial.

“But there’s a lot of reason to believe … we may have been through the brunt of it, at least for a little while,” Cohen said.

John Hueston, an attorney for Amazon, disputed Cohen’s request to push back the trial date.

“There has been no showing on this call that the government does not have the resources to proceed to trial with the trial date as presently set,” Hueston said. “What I heard is that they’ve got the whole trial team still intact. Maybe there’s going to be an office move. And by the way, both in government and private sector, I’ve never heard of an office move being more than a few days disruptive.”

The FTC sued Amazon in June 2023, alleging that the online retailer was deceiving millions of customers into signing up for its Prime program and sabotaging their attempts to cancel it. Amazon has denied any wrongdoing, calling the FTC’s claims “wrong on the facts and the law.”

“Amazon tricked and trapped people into recurring subscriptions without their consent, not only frustrating users but also costing them significant money,” former FTC Chair Lina Khan said at the time.

The FTC brought a separate case against Amazon in September 2023 accusing it of wielding an illegal monopoly. The agency alleged that Amazon prevents sellers from offering cheaper prices elsewhere through its anti-discounting measures. That case is set to go to trial in October 2026.

In the time since the FTC filed its cases, Khan has been replaced as the head of the FTC by Trump appointee Andrew Ferguson. Tech companies, which are the target of several regulatory agencies, have sought to curry favor with Trump, including Amazon founder and executive chairman Jeff Bezos. He attended President Donald Trump’s inauguration in January, and Amazon was among several tech companies to donate $1 million to Trump’s inauguration committee.

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Tesla bounces for second day after steepest drop since 2020

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Tesla bounces for second day after steepest drop since 2020

Tesla CEO Elon Musk looks on as U.S. President Donald Trump speaks to the press as they stand next to a Tesla vehicle on the South Portico of the White House in Washington, D.C., on March 11, 2025.

Mandel Ngan | AFP | Getty Images

Tesla shares rose for a second straight day in early trading Wednesday after the stock recorded its worst day since 2020 earlier in the week.

Shares were last up 8%, building on a 3.8% gain from Tuesday.

The electric vehicle stock plunged 15.4% on Monday for its worst session since September 2020 as investors sold popular technology shares and markets tumbled on rising recession fears and tariff uncertainty. The move pushed the Nasdaq to its worst day since 2022 and erased $750 billion in market value among the tech megacaps.

Tesla has tumbled in recent weeks, shedding more than 40% in market value since President Donald Trump took office. Shares rallied in the postelection Trump trade on bets that CEO Elon Musk’s close ties to the president would benefit the company.

Tariff concerns have added fuel to that fire as a potential trade war threatens two key supplier markets. That pushed the company to its longest weekly losing streak in its 15-year public market history.

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Since Trump’s inauguration, Musk has become a key face of the new White House administration and close advisor of the president as he looks to reduce government spending, leading the so-called Department of Government Efficiency.

Trump said Tuesday he plans to buy a Tesla in support of Musk as Tesla locations around the country see protests and demonstrations.

Tesla has also dealt with brand erosion stemming from incendiary political rhetoric on Musk’s social media platform X. The platform suffered several outages on Monday. Meanwhile, Musk’s aerospace and defense company SpaceX is currently investigating two test flight explosions.

The company also faces a divided Wall Street, as bears point to rising EV competition, declining new vehicle deliveries and the effects of tariffs on the company’s near-term business. Bulls still have faith in Musk and his promise to unveil an affordable new model EV and start a driverless ride-hailing service later this year.

A recent investor survey found that 85% of respondents believed politics are hurting the company. Shares have lost more than a third in value since the start of the year.

— CNBC’s Lora Kolodny contributed reporting.

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Spotify says it paid nearly 1,500 artists $1 million or more in royalties for 2024 streams

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Spotify says it paid nearly 1,500 artists  million or more in royalties for 2024 streams

In this photo illustration, the Spotify music app is seen on a phone on June 04, 2024 in New York City.

Michael M. Santiago | Getty Images

Spotify is minting music millionaires.

Nearly 1,500 artists generated over $1 million in royalties from Spotify in 2024, the company said Wednesday in its annual Loud and Clear Report.

Spotify said more than 80% of the artists in that pool didn’t have a song reach the app’s Global Daily Top 50 chart.

“Spotify has helped level the playing field for artists at every stage of their careers,” read a portion of the report. “Success in the streaming era doesn’t require a decade-spanning catalog nor a chart-topping hit.”

The news comes about a month after the company reported a fourth-quarter earnings beat that saw the Swedish music streamer record its first full year of profitability. The company said it paid an all-time high of $10 billion in royalties to the music industry for the year.

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