Matt Mullenweg is probably the ideal web company CEO
Automattic has been running for 17 years. The company is home to nearly two dozen brands and products powering or leveraging the web, including WordPress, WordPress VIP, WooCommerce, Jetpack, Simplenote, Day One, PocketCasts, and Tumblr.
When Automattic purchased Tumblr, they somehow managed to pay just $3 million from Verizon who got it as part of its acquisition of Yahoo. Tumblr was a billion dollar company at one point and since 2019 it belongs to a multibillion dollar company.
The transaction cost for us buying Tumblr was de minimis. But it was a deal in which we took on all of its liabilities and all of its legal cases, we kept all the employees and all the costs to run it. Tumblr was, and still is, burning quite a bit of cash.
Matt said Automattic was prepared to pay $100 million but they managed to only spend $3 million. Sounds like a steal? Well, in the three years since the acquisition Tumblr was being cleaned up from the inside. 85% of the team joined after the acquisition and he’s had to reorganize the company to reassign staff because Tumblr has to downsize to 50-60 people to match their revenue before they can go up again.
From the interview it sounded like he didn’t let people go but reassigned them to the other products under Automattic.
Matt understands that the web is a decentralized network built on protocols. He also understands talent is also decentralized. Automattic allows its staff to work from anywhere and no longer has a physical office since shutting down its headquarters in 2017. Everyone who works at WordPress (even Matt) has to spend time handling customer support to understand their pain points.
Understanding what decentralized entails is core to Matt’s goals for the web. It’s why the idea of federating Tumblr and WordPress sites and pages and allow those sites and pages to be connected to join the federated network and become the social web is one of the company’s top priorities and when you run a social web company, content moderation is key.
I would say that it is about 20 percent pruning out the bad stuff as if you’re weeding a garden and about 80 percent encouraging the things that you want to grow. It definitely needs to be a long-term thing. You need to water it every day, but the results are going to happen over months or years.
Tumblr recently reopened itself to adult content but it’s doing so in a more careful and controlled manner to accommodate the needs of those working or with interest in the adult industry and those wishing to keep their neighborhood safe for children and acceptable at work.
Tumblr, WordPress, and Automattic may not be as glitzy and glamorous as other major web companies but more than 40% of websites run on WordPress today and they’re quietly marching towards 80% by embracing openness and decentralization.
When TechCrunch interviewed Matt as the new CEO of Automattic in 2014, he said, “The power of the web is not in centralization, it’s not in closed systems or anything like that. It’s in its open nature and that’s what allowed it to flourish for the first 10 or 15 years”









