BlackRock further devalues its investment in Automattic

Back in October 2024, I wrote about investments within the WordPress ecosystem that were coming to light as part of the war between Matt Mullenweg and WP Engine. One of the known investments was in Automattic—BlackRock acquired shares in Automattic as part of its Series E funding. However, as I noted last October, BlackRock had considerably devalued its shares in Automattic by ~51%, to ~$43.85 per share.

Fast forward to December 2024, and TechCrunch reported a further devaluation by BlackRock which, after two subsequent devaluations, now valued its shares in Automattic at just ~$37.50 per share.

Today, I can report that BlackRock’s devaluation of Automattic continues. As of March 31, 2025, BlackRock now values its shares in Automattic at just $31.03, down over $10 per share, year over year. BlackRock originally purchased its shares for $85 per share, so this represents a 63.5% devaluation of Automattic since 2021.

Mullenweg has previously noted that BlackRock has a very small ownership stake in Automattic, sometimes saying 0.6% and other times 0.8% (note my correction at the top of this post). He’s also emphasized that BlackRock has no voting rights. So, why does this devaluation matter?

There are two key reasons BlackRock’s devaluation matters to the WordPress ecosystem.

First, as an investor, BlackRock is privy to more information than the general public—for example, BlackRock likely has access to ongoing financial reports. BlackRock clearly thinks there is an underlying problem with Automattic’s performance as a company. And, BlackRock clearly thinks it’s ongoing and not getting better, given it continues to devalue Automattic. Automattic, for it’s part, has been pivotal to the success of WordPress—providing engineering, marketing, and more to WordPress itself.^[1]

The second thing to consider is the “why” of these devaluations. Keeping in mind that the devaluation was as of March 31, 2025—so, days before Automattic laid off 16% of its workforce—what information led BlackRock to devalue Automattic? While I suspect BlackRock may have been aware of the impending layoffs, it seems likely that there were other considerations. Could BlackRock have further considered the status of the ongoing WP Engine lawsuit? Or perhaps it took into account the new Keller lawsuit as a risk to the business?

Whatever the rationale for the devaluation, it does not bode well for WordPress. Mullenweg’s diverted attention only further distracts from the needs of the WordPress project.