Matt Mullenweg, the founder and CEO of Automattic, sat down for an interview with CIO.com to discuss the legal dispute with WP Engine, where Automattic is demanding an 8% revenue share or $32 million to help develop WordPress.
Mullenweg revealed that negotiations with WP Engine have been ongoing for 18 months without success, leading to his frustration. He believes that if WP Engine agrees to cooperate, they shouldn’t have to pay as much as $32 million; it should be a more straightforward process. He expressed willingness to return to the negotiating table but cautioned that the offer may not be as favorable as previous proposals in June or September.
Furthermore, Mullenweg highlighted that WP Engine is losing customers steadily, leading them to attack him and WordPress.com constantly. This situation has gradually increased his bargaining power.
Reports from CIO.com indicate that Silver Lake, the investment firm that owns WP Engine, is seeking opportunities to sell WP Engine to other investors but has not succeeded yet. While WP Engine’s business metrics are strong in terms of user numbers and revenue, the lack of intellectual property (referring to the WordPress system) owned by them is a drawback. Therefore, Silver Lake is attempting to maximize WP Engine’s valuation, which is why they are unwilling to pay money to the WordPress project.
TLDR: Matt Mullenweg discusses the legal dispute with WP Engine over revenue share for WordPress development, highlighting stalled negotiations and WP Engine’s diminishing customer base. Silver Lake’s efforts to sell WP Engine are hindered by the lack of intellectual property, impacting their reluctance to fund the WordPress project.
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