Automattic TC-1: Details and Specifications

The Shifting Landscape of Media Empires

Constructing a lasting media presence is a formidable challenge, and maintaining one is equally precarious. Historically, newspaper publishers yielded prominence to broadcasting leaders, initially through radio, then television and cable networks. Currently, these entities are contending with social media giants and streaming service providers for audience engagement. Each successive wave of media leaders eventually fades, replaced by new figures, while each medium ultimately discovers its place before being superseded by innovative alternatives.

Considering this dynamic, the case of Automattic, the primary commercial entity supporting the open-source WordPress publishing platform, presents a unique perspective on time and endurance within an industry marked by the failures of numerous media organizations. Established in 2005, the company has consistently adapted and broadened its scope, effectively mitigating the pervasive sense of instability common in the media sector.

Having reached a valuation of $7.5 billion after sixteen years, Automattic has achieved significant progress while simultaneously aiming to increase its market share. The company functions as a publisher, a social networking platform through its acquisition of Tumblr, a substantial e-commerce provider with WooCommerce, a productivity suite with P2, and more. Remarkably, it attained this position by seemingly defying conventional venture capital wisdom, a strategy that, as will be detailed, proved exceptionally effective over time.

TC-1 Report Details

Chris Morrison served as the primary author for this TC-1 report (revised from our earlier EC-1 format to align with the TechCrunch+ rebrand). Chris is a highly productive analyst of emerging companies, having previously profiled Roblox and Klaviyo within this series. Beyond his writing and analytical work, he is an independent game developer, bringing his expertise in business development and engineering to his assessment of Automattic and its commitment to open source principles. Danny Crichton was the lead editor for this comprehensive package, with assistance from assistant editor Ram Iyer, copy editor Richard Dal Porto, and illustrations by Nigel Sussman.

Mr. Morrison has no financial relationships with Automattic and has disclosed no conflicts of interest.

This Automattic TC-1 report consists of four core articles, totaling 10,700 words and an estimated reading time of approximately 40 minutes. A detailed overview of each part follows:

• Part 1: The Genesis “How a contrarian approach propelled Automattic to become a multibillion-dollar media force” (3,850 words/15 minutes) — This section examines the origins of Automattic following the success of the WordPress project, detailing how a young jazz saxophonist, initially involved in publishing as a hobby, evolved into a prominent media leader.
• Part 2: Navigating Open Source “The complexities of harmonizing commercial expansion with an open-source developer community at Automattic” (2,500 words/10 minutes) — This article investigates the inherent challenges of commercially supporting an open-source project, and how Automattic manages to foster community growth while enabling contributor participation.
• Part 3: Strategic Acquisitions & Future Outlook “The potential of social and e-commerce platforms to reshape the open web” (2,350 words/9 minutes) — This analysis explores Automattic’s history of acquisitions and expansions, focusing on its initiatives in e-commerce and social media – two highly competitive areas crucial to its future success.
• Part 4: A Remote-First Culture “The evolving role of text-based communication in the future of remote work” (2,000 words/8 minutes) — This report details the development of Automattic’s distinctive corporate culture, which embraced remote work long before it became commonplace in the technology industry, and how the company prioritizes text-based communication.

We are continually refining the TC-1 format. Your feedback is valuable. Please direct any questions, comments, or suggestions to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.