BlackRock Cuts Automattic Investment by 10%

BlackRock Reduces Valuation of Automattic Stake

BlackRock has revised downward the assessed value of its investment in Automattic, a leading web hosting provider, by 10%. This adjustment was detailed in the asset manager’s most recent quarterly disclosure.

The investment was initially made during Automattic’s Series E funding round in 2021. Currently, BlackRock values its shareholding in the WordPress-hosting company at $37.50 per share.

This represents a decrease from the previous valuation of $41.70 per share recorded earlier in the year.

Context: Dispute with WP Engine

The valuation reduction follows a highly visible dispute between Automattic and competitor WP Engine. The conflict centers around access to core WordPress resources.

A legal battle has been ongoing since Matt Mullenweg, CEO of Automattic, restricted WP Engine’s access to WordPress.org, the platform hosting WordPress themes and plugins.

WP Engine is actively pursuing a preliminary injunction to restore its access to WordPress.org.

BlackRock’s Limited Influence

In a statement made in September via X (formerly Twitter), Matt Mullenweg clarified BlackRock’s position within Automattic.

He indicated that BlackRock’s ownership constitutes only 0.6% of Automattic and does not confer any voting rights within the company.

Therefore, BlackRock’s stake does not allow for direct influence over company decisions.