All posts by Matt

GPL Clarification

A quick followup on my prior conversation with Theo.

During that chat, I talked briefly about a trademark infringer that was also distributing nulled plugins. I said “Not illegal. Legal under the GPL. But they weren’t changing the names. They were selling their customers Pro Plugins with the licensing stuff nulled out.”

I want to be clear that my reference to legality and GPL was solely focused on the copying and modifying of the code. That is one of the key freedoms of open source and GPL: the right to copy and modify GPL code.

I was not speaking about their right to charge money for nulled plugins. GPLv2 prohibits that because they aren’t providing physical copies or support. This is very different from reputable web hosts, who provide hosting and support for websites and e-commerce stores.

Kindness and Techcrunch Disrupt

Back in June I recorded an episode with Jaclyn Lindsey on the Why Kindness podcast, for their awesome non-profit kindness.org. You can listen to it through Pocket Casts here:

This is kind of funny because I’m obviously in the midst of the big battle with Silver Lake and WP Engine. I am a huge proponent of kindness, but sometimes you have to stand up for what’s right if someone is taking advantage of you.

I’m continuing to do some select press, and will be appearing in a conversation with Techcrunch’s Editor-in-Chief, Connie Loizos, at 10:30AM on Wednesday in San Francisco at their Disrupt conference. It’s an amazing conference! Over 10k people from all over the world, just started today. I’m glad they were able to work me into the schedule, I think it will be a timely conversation. We may even have an announcement to make. 🙂

My Freedom of Speech

WP Engine has filed hundreds pages of legal documents seeking an injunction against me and Automattic. They say this is about community or some nonsense, but if you look at the core, what they’re trying to do is ask a judge to curtail my First Amendment rights.

The First Amendment is the basis of our democracy. It is inconvenient and important. It’s also short, so I’m going to quote the First Amendment in its entirety:

Congress shall make no law respecting an establishment of religion, or prohibiting the free exercise thereof; or abridging the freedom of speech, or of the press; or the right of the people peaceably to assemble, and to petition the Government for a redress of grievances.

This means that, with rare exceptions, the government cannot tell you not to say something.

Freedom of Speech is not Freedom of Reach

The First Amendment says I should be able to state facts and my opinions about WP Engine. However, the New York Times is not required or compelled to publish them in their newspaper and distribute them to their subscribers.

WP Engine is free to publish whatever GPL code they want to the world. WordPress.org should not be compelled to distribute it or provide it free hosting.

Quiet For A While

After this post, I will refrain from personally commenting on the WP Engine case until a judge rules on the injunction. I will continue to exercise my First Amendment rights to promote others’ speech. However, I hope others speak up on our battle with WP Engine, and I will boost their speech wherever I can.

There are two great Cloudflare-related stories published this weekend.

The first is Steven Levy’s incredible story about Tim Jenkin, who created a secure communication protocol for the African National Congress to overthrow the apartheid regime in South Africa. Cloudflare’s CTO, John Graham-Cumming, later helped break past the cryptography system’s lost password, which he blogged about with some technical detail here.

Second, my dear friend Om Malik published a great conversation with Cloudflare CEO Matthew Prince in his new newsletter Crazy Stupid Tech. Matthew and Om are influential thinkers to listen to, and their discussion contains a lot of interesting nuance about networks, censorship, and sovereignty.

Those Other Lawsuits

It’s a heavy day, and I’m sad to write this. Not sure where to start.

In 2022, a lawyer recruited two people who took care of my Mom—an assistant and one of her dozen nurses—to resign and demand a million dollars each, or they would publish horrible things about her in a lawsuit. I refused. The lawsuits were filed. Luckily, the accusations are so sick, twisted, and outrageous that they refute themselves. There’s some weird sex stuff, and also claims that my Mom is racist. I am sad for whatever mind could even imagine such things.

I won’t link or quote them because they don’t deserve that, but the lawsuits have been part of the public record and available to anyone with a web browser since 2022. The lawyer sent them to every major media publication and gossip rag. You’re just hearing about them now because any journalist who spent five minutes calling around easily saw how spurious the claims are and didn’t run with the story. They’ve been dredged up as part of the smear campaign against me in my battle with Silver Lake and WP Engine.

My advice for any other founder: As you gain wealth this may happen to you with household staff as well. Never settle. It just creates an incentive for more people to make stuff up. Even if it’s messy, fight the claims in court as I am doing. It’s the only way to deter people trying to make a quick buck. These cases are common, and the media is used to them.

Now for some good news! I’m happy to report that since these two people left, my Mom has had no errors in her medication (previously, she had to be hospitalized twice and almost died because of medication errors). She’s back to the weight she was in her 30s and isn’t in a wheelchair all the time anymore. She’s just moved into a new home we’ve been remodeling together for the past 5 years. She still has 24/7 RNs, but the new nurses have been fantastic and feel like an extension of our family. We’re looking forward to celebrating the holidays together with my sister, lifelong family friends like the Ornelas family, Mom’s four dogs, and some of my fifteen godchildren who live in the area.

I may be wrong or dumb about many other things, but I sincerely believe in the sanctity and beauty of every human life, regardless of any background. We are all God’s creation. My Mother taught me these values, and I have done my best to uphold them in my life’s work building open source, WordPress, and Automattic. It’s part of why I give so much back.

Response to DHH

I’ve taken this post down. I’ve been attacked so much the past few days; the most vicious, personal, hateful words poisoned my brain, and the original version of this post was mean. I am so sorry. I shouldn’t let this stuff get to me, but it clearly did, and I took it out on DHH, who, while I disagree with him on several points, isn’t the actual villain in this story: it’s WP Engine and Silver Lake.

A few bullets to his core points:

  • The headline “Automattic is doing open source dirty” is not fair.
  • Automattic did not work on a deal with WP Engine for 18+ months because of the GPL, or them using “WP” in their name, it was because of their abuse of the WordPress and WooCommerce trademarks. Trademarks must be protected, as evidenced by Rails trademark policy.
  • Our C&D is about public trademark abuse; theirs is about censorship, and doxxes private messages. They have since filed a kitchen sink lawsuit that embroils all of WordPress.org.
  • Updating ACF to Secure Custom Fields in our directory was to provide users of our plugin directory the best, safest, most secure code. It included a security update that still has not been merged by the ACF team.
  • We will merge any improvements ACF makes to their GPL code going forward and will also include enhanced functionality in the coming days to provide a secure and free drop-in replacement for ACF. If WP Engine didn’t want this to happen, they should not have published their code under the GPL or distributed it through WordPress.org’s directory.
  • I think it’s fantastic when businesses are built on open source, the WordPress ecosystem is at least 10B+ a year; Automattic and WP Engine are less than 5% of that.

Everyone’s An Owner

Last Friday we said goodbye to 159 colleagues as part of our alignment offer. It was a tough day, there are a lot of close relationships within Automattic, and goodbyes are always hard.

On Monday, I got to be Oprah for a few minutes. We had scheduled a town hall for leaders around the company to speak to everyone, and our Woo team had ~350 people in person at a meetup in Tulum. I had five minutes to talk, and over the weekend, I had been brainstorming with finance and HR for something nice we could do for everyone who stayed. We couldn’t give them all a six-month bonus, which would have cost ~$126M, but we did take how much we spent on severance for the 159 people, rounded up a bit, and granted everyone at Automattic 200 shares of A12 stock, so about a $12M bonus for the employees.

What’s A12 stock? This is probably the first time you’re hearing about it, we haven’t had a chance to talk about this publicly much before.

Usually, options or common stock in a private company is fairly illiquid, with rare opportunities to sell or lots of restrictions like what Uber had; it’s not an efficient or predictable market. Options are “nice” because they can defer taxes, but you still have to exercise them, and they can go underwater. Also, as a fully distributed company, we have people in 91 countries, so security and tax laws around options make them not worth it in most places outside of the US.

When thinking about a stock plan for Automatticians, we thought, our most sophisticated investors have nice protections like a 1x liquidation preference, what if we gave that to employees, too? So to summarize, A12 is a special class of stock available only to buy if you’re a current Automattician with these characteristics:

  • There are twice-a-year windows to buy. You have to hold for 1 year, but then there are quarterly windows to sell, which is very predictable.
  • Automattic maintains the internal market, and provides a backstop so you can always sell the shares at what you paid for them or more, like a 1x liquidation preference.
  • Current employees can buy, but former employees are eligible for every selling window, there’s no politics like can happen with tender offers. It’s reliable and predictable.
  • Unlike options, A12 stock never expires. Once you own it, you own it.
  • Initially we only allowed $25k/year of A12 to be purchased, but as our business has scaled we now allow up to $1M/yr of A12 stock to be purchased. (Remember, the company has to backstop the purchase price.)
  • A12 is just economic rights, it doesn’t have any voting rights.
  • A12 stock can be transferred to a trust.
  • The price is set by an external firm, just like our 409a. Because that process discounts us so much for being private, it’s a pretty good deal compared to what investors would pay for a share.
  • We’ve mostly moved away from options, which really only work for already wealthy, sophisticated hires. We pay very generous base salary (which banks love, makes it easier to get a mortgage) and then people can make a personal decision whether the characteristics of A12 fits with their financial planning alongside index funds, stocks, and bonds.

We’ve been running this program since 2016. The main downside risk for A12 holders, which isn’t that different from common stock, is that we go out of business and can’t keep our commitments. But that’s true of any stock investment, and we have a pretty solid track record.

We want everyone to have an owner mentality, so we’ve also now started granting 1 share of A12 stock to every new hire.

Our legal team has their hands full right now with the Silver Lake / WP Engine stuff, but we’d like to open source our docs around this so other companies can offer the same thing easily, I’ll see if we can make time for that in the next few weeks.

We also announced something else cool for employees on Monday around our Grand Meetup in 2025, but to know that secret you have to work with us. We are one of the most open companies, but we can’t publish everything! ☺️

Rhino Dehorning

Yesterday in the African bush was great, I saw giraffes, zebras, warthogs, leopard turtles, elephants. Today wasn’t great: I witnessed a rhino shot with a tranquilizer from a helicopter, then it was held down, had its horns cut off, and then shaved down. I have some photos and videos from the event but I’m not going to share them, because I think it’s really tragic. While this was happening I put my hand on the rhino’s belly to try to send it love, because I can’t imagine how confusing and terrifying the experience was.

Let’s back up: Why does anyone care about rhino horns? First, you have to start with how dangerous false ideas and memes can be. Rhino horns are 92-95% keratin, just like your fingernails, the rest is basic stuff like melanin, calcium salts, magnesium, sulfur, nitrogen, amino acids, and phosphorus. There is nothing special or magic about a rhino horn that you couldn’t easily obtain many other ways.

However there is a dangerous infovirus going back thousands of years that rhino horns can cure various ailments, from cancer to fevers, and have aphrodisiac properties. To quote Scientific American:

Some purchase horn chunks or powder for traditional medicinal purposes, to ingest or to give others as an impressive gift. Wealthy buyers bid for antique rhino horn carvings  such as cups or figurines to display or as investments. A modern market for rhino horn necklaces, bracelets and beads has also sprung up. […]

On the bright side, traditional Chinese medicine experts have increasingly joined the fight to reduce the demand for rhino horn. When China officially banned the international trade in 1993, it followed up by removing rhino horn as a medical ingredient in traditional Chinese medicine’s pharmacopeia  and curriculum. […]

“Traditional Chinese medicine has a history of 3,000 years and we have been educating the public for less than 30 years,” Huang notes. “Therefore this is an ongoing education.”

Regardless of the reasons, there is a price for rhino horns. I was told the larger front horn would get about $300,000 on the black market, and rhinos have been poached to near-extinction. Combine that with South Africa’s 33% unemployment rate, some people turn to crime or poaching to make money. It’s cheaper and faster to kill the rhino and take its horn than tranquilize it as the game reserve did.

I don’t want to criticize the people at the game reserve. They clearly cared for the animal quite deeply, and while it was tranquilized, they provided other veterinary help for it, like removing ticks. They also put a tracker on its foot. They say they lock the horns in a vault… why? Burn it, toss it. The thinking is that reserves that are known for de-horning will attract fewer poachers.

This is obviously a middle solution, and I hope ten years from now we’ll look back at this as a point in time we learned from. On the demand side, it seems like aggressive education campaigns could help decrease demand for keratin from rhinos. On the anti-poacher side, I think drones will be able to secure perimeters far more securely than fences currently do. It would be fascinating for an economist like Tyler Cowen to dive into these issues.

Automattic Alignment

Winston Churchill said, “Never let a good crisis go to waste.” Since I last blogged here, WP Engine filed a meritless lawsuit and Automattic responded, and there’s been a hurricane of public activity and press. Inside of Automattic, there’s been a parallel debate and process.

Silver Lake and WP Engine’s attacks on me and Automattic, while spurious, have been effective. It became clear a good chunk of my Automattic colleagues disagreed with me and our actions.

So we decided to design the most generous buy-out package possible, we called it an Alignment Offer: if you resigned before 20:00 UTC on Thursday, October 3, 2024, you would receive $30,000 or six months of salary, whichever is higher. But you’d lose access to Automattic that evening, and you wouldn’t be eligible to boomerang (what we call re-hires). HR added some extra details to sweeten the deal; we wanted to make it as enticing as possible.

I’ve been asking people to vote with their wallet a lot recently, and this is another example!

159 people took the offer, 8.4% of the company, the other 91.6% gave up $126M of potential severance to stay! 63.5% were male. 53% were in the US. By division it impacted our Ecosystem / WordPress areas the most: 79.2% of the people who took it were in our Ecosystem businesses, compared to 18.2% from Cosmos (our apps like Pocket Casts, Day One, Tumblr, Cloudup). 18 people made over 200k/yr! 1 person started two days before the deadline. 4 people took it then changed their minds.

It was an emotional roller coaster of a week. The day you hire someone you aren’t expecting them to resign or be fired, you’re hoping for a long and mutually beneficial relationship. Every resignation stings a bit.

However 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. As the kids say, LFG!

On with Theo / T3.gg

On Thursday, a prominent developer, YouTuber, Twitch streamer, and journalist posted a video titled This might be the end of WordPress. It was very harsh. In that video you’ll hear him say about me, “he’s a chronic hater” (7:55), “seems like he’s been a pretty petty bastard for a long time now” (10:22), “I hate this shit, I hate when people are assholes and they get away with it because I’m doing it for the greater good, the fake nice guy shit. I’ll take an asshole over a fake nice guy any day, people whose whole aesthetic is being nice, I hated it.” (11:25), “Honestly I’d rather the license just be explicit about it than this weird reality of ‘If you get popular enough you can still use it but the guy who made WordPress is going to be an asshole to you.’ That seems much worse than most open source models.” (14:39)… it goes on.

Ouch!

However, one of my colleagues Batuhan is a follower of Theo’s and suggested I engage with him. It turns out we were both in San Francisco, and he was game for a livestreamed, no-conditions interview at his studio. I believe discussion is the best way to resolve conflict, that’s why my door is open to Lee Wittlinger, Heather Brunner, Brian Gardner, or any WP Engine or Silver Lake representative who wants to talk to resolve things.

Saturday afternoon I went to Theo’s studio, we had a vigorous two hour debate and discussion with some real-time chat polling that also changed my mind on a few things, and his, too. I left feeling like I had a new friend. ️And met some awesome cats. Check out the video.

Where is Lee Wittlinger?

Lee controls the board of WP Engine. The board is why WP Engine hasn’t done a trademark deal for their use of the WordPress and WooCommerce trademarks.

You hide behind lawyers and corporate PR when you’re wrong, not when you’re right.

I’m replying on Twitter, I’m commenting on Reddit and Hacker News, I’m dropping into livestreams with ThePrimeagen and WPMinute. I’m talking to journalists whenever they reach out, and I’m happy to go on any large credible podcast or show to discuss these issues.

Lee could do the same. Why isn’t he?

Lee is a managing director of a $102B private equity firm, he is probably richer than me. (Though I doubt he gives back as much.)

“Because their lawyers are telling him not to.” Why do you think their lawyers are telling them not to?

Open invite: Lee, let’s debate this publicly. Propose a neutral venue and moderator.

On ThePrimeagen

I dropped on the livestream for ThePrimeagen earlier today after a colleague pinged me that he was talking about the Silver Lake / WP Engine situation.

Afterward, I also privately shared with him the cell phone for Heather Brunner, the WP Engine CEO, so she can hop on or debate these points. As far as I’ve heard she hasn’t responded. Why is WP Engine scared of talking to journalists live?

WPE & Trademarks

I’ve been writing and talking about WP Engine a lot in the last week, but I want to be crystal clear about the core issue at play.

In short, WP Engine is violating WordPress’ trademarks. Moreover, they have been doing so for years. 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. Finally, I drew a line in the sand, which they have now leapt over.

We offered WP Engine the option of how to pay their fair share: either pay a direct licensing fee, or make in-kind contributions to the open source project. This isn’t a money grab: it’s an expectation that any business making hundreds of millions of dollars off of an open source project ought to give back, and if they don’t, then they can’t use its trademarks. WP Engine has refused to do either, and has instead taken to casting aspersions on my attempt to make a fair deal with them.

WordPress is licensed under the GPL; respect for copyright and IP like trademarks is core to the GPL and our conception of what open source means. If WP Engine wants to find another open source project with a more permissive license and no trademarks, they are free to do so; if they want to benefit from the WordPress community, then they need to respect WordPress trademark and IP.

Further reading:

Charitable Contributions

I knew going to war with Silver Lake, a $102B private equity firm, they would pull out every dirty trick to try to smear my name, do oppo research, imply I’m a mafia boss trying to extort them, etc.

I have kept my personal philanthropy private until now. I would like to offer up one piece of evidence for the public to consider, which is the IRS accounting of my 501c3 charitable donations.

This is something I’ve tried to keep quiet, because true philanthropy isn’t about recognition. As you can see, my personal liquidity goes up and down but I give back as much as I can when I can.

  • 2011: $295,044.60
  • 2012: $401,121.00
  • 2013: $2,088,890.88
  • 2014: $98,648.00
  • 2015: $101,947.00
  • 2016: $42,300.00
  • 2017: $51,562.50
  • 2018: $606,957.68
  • 2019: $620,802.65
  • 2020: $607,452.48
  • 2021: $2,151,602.26
  • 2022: $2,780,054.20
  • 2023: $2,276,425.06

If Lee Wittlinger, who controls Silver Lake’s investments in the WordPress ecosystem, or Heather Brunner, the CEO of WP Engine, would like to publish their charitable contributions over the past 12 years, they are welcome to do so.

Are Investors Bad?

Some people have been interpreting my comments around private equity and investors as saying they’re all bad and you should never accept investment or trust a company that does… I don’t agree with that at all. Investors are amazing, they’re the fuel of entrepreneurship and capitalism and responsible for most of what we enjoy today. I can look in the eye of another founder and wholeheartedly recommend Automattic’s investors—True Ventures, Addition, Tiger Global, Salesforce, GIC, ICONIQ, LVMH/Aglaé, Akkadian, Wellington, Sweetwater, Alta Park, Schonfield, Chris Sacca…—and say they’ve upheld open source values and allowed us to nourish the open source ecosystem and flourish as a business. (They’re not an investor, but there are new folks like OSS Capital which are totally open source aligned.)

So investors, even “private equity” ones can be okay, but just like with anything, there are good ones and bad ones, so it is worthwhile to look into their track record. After an investor joins a company, what happens next? Do they change away from an Open Source license? Does the community flourish or wither on the vine as a result of their actions? It can be complex because you can have, as we do in WordPress, some companies contributing and some companies just taking. Some investors, like ours, are minority investors, which means they don’t control the company. Some buy a majority share in companies and control them, and that’s where who ultimately owns things matters the most.

Can they change? Of course. Every saint has a past and every sinner has a future. I think everyone should be afforded that grace. But it can’t just be in words, it has to be in action.

I may make my keynote tomorrow a deep dive presentation into some specific examples of this going poorly, because I think it’s highly relevant to WordPress’ survival. Tune in! There will be a livestream here.