BlackRock Marks Down Its Investment in Automattic by 10%  🔗 **Source:** [BlackRock Marks Down Its Investment in Automattic by 10%](https://techcrunch.com/2024/12/02/blackrock-marks-down-its-investment-in-automattic-by-10/) > [!note]+ Document Notes > tags: [#wordpress, #automattic, #investment, #opensource, #blackrock] > - #valuation > - #legalbattle > - #wpengine > Author: TechCrunch > Source: TechCrunch > Reference: [BlackRock Marks Down Automattic Investment](https://techcrunch.com/2024/12/02/blackrock-marks-down-its-investment-in-automattic-by-10/?__readwiseLocation=) > date created: 2024-12-03 20:30 > > # Title: BlackRock Reduces Automattic Valuation Amid Legal Disputes > <!-- deep-read:sections start --> ## Table of Contents: - [📝 Summary](#-summary) - [📖 Main Content](#-main-content) - [🗒️ Notes](#️-notes) - [📖 References](#-references) - [🗣️ Paraphrase](#-paraphrase) - [📰 Newsletter](#-newsletter) - [✅ Action Items](#-action-items) - [🧪 Hypotheses](#-hypotheses) - [📊 Methodology](#-methodology) - [❓ Questions](#-questions) - [🔮 Future Research](#-future-research) - [💡 Implications](#-implications) - [🧠 Learning Styles Assessment](#-learning-styles-assessment) - [📊 Accessibility Assessment](#-accessibility-assessment) - [🌍 DEIB Assessment](#-deib-diversity-equity-inclusion-and-belonging-assessment) - [✅ Logical Validity](#-logical-validity) - [🔍 DARVO Analysis](#-darvo-analysis) - [🔍 SEO Evaluation](#-seo-evaluation) - [🎯 Conclusion](#-conclusion) --- ## 📝 Summary: BlackRock reduced its valuation of Automattic, the company behind WordPress.com, from $41.7 to $37.5 per share, marking a 10% decline. The markdown follows a contentious legal dispute between Automattic and WP Engine over access to WordPress.org. Automattic CEO Matt Mullenweg previously stated that BlackRock's stake of 0.6% carries no voting rights. --- ## 📖 Main Content: ### 🗒️ Notes - **BlackRock Valuation**: - BlackRock revised its investment valuation in Automattic by 10%. - Shares now valued at $37.5, down from $41.7 earlier in 2024. - **Context for Reduction**: - Legal disputes between Automattic and WP Engine are escalating. - Automattic blocked WP Engine’s access to WordPress.org. - **Legal Battle**: - WP Engine is seeking a preliminary injunction to regain access to WordPress.org. - **CEO Commentary**: - Mullenweg downplayed BlackRock’s influence, citing its minor stake and lack of voting rights. --- ## 📖 References: - [TechCrunch Article](https://techcrunch.com/2024/12/02/blackrock-marks-down-its-investment-in-automattic-by-10/?__readwiseLocation=) --- ## 🗣️ Paraphrase: 1. **Original**: "BlackRock reduced its valuation of Automattic, the parent company of WordPress.com, from $41.7 to $37.5 per share." **Paraphrase**: BlackRock decreased Automattic's share valuation from $41.7 to $37.5, reflecting a 10% markdown. 2. **Original**: "The legal dispute involves WP Engine's blocked access to WordPress.org, a critical platform for hosting themes and plugins." **Paraphrase**: WP Engine has been locked out of WordPress.org, which hosts essential resources like themes and plugins, sparking a legal conflict. --- ## 📰 Newsletter: 📢 **WordPress in the Spotlight: Investment Updates and Legal Showdowns** This week, BlackRock adjusted its valuation of Automattic, marking a 10% reduction to $37.5 per share. The move comes amidst ongoing legal tension with WP Engine, which is fighting for access to WordPress.org. Automattic CEO Matt Mullenweg clarified that BlackRock’s 0.6% stake carries no voting rights. Stay tuned for updates on this pivotal conflict shaping the WordPress ecosystem! [Read More](https://techcrunch.com/2024/12/02/blackrock-marks-down-its-investment-in-automattic-by-10/?__readwiseLocation=) --- ## ✅ Action Items: 1. **Track Legal Developments**: - Monitor WP Engine’s injunction efforts and their potential implications for WordPress.org governance. 2. **Engage Stakeholders**: - Facilitate discussions within the WordPress community regarding Automattic’s influence on the ecosystem. 3. **Strategic Communication**: - Develop talking points to address the implications of BlackRock’s markdown for open-source contributors. --- ## 🧪 Hypotheses: - Legal disputes between Automattic and WP Engine will influence future valuation adjustments and community trust. ### 📊 Methodology: - Conduct sentiment analysis of WordPress community forums regarding Automattic’s governance. --- ### ❓ Questions: - What impact could WP Engine’s potential access reinstatement have on WordPress.org’s neutrality? - How does Automattic’s control of WordPress.org affect perceptions of open-source independence? --- ### 🔮 Future Research: - Examine the financial implications of Automattic's dominance in the WordPress ecosystem. --- ### 💡 Implications: Resolving the legal dispute transparently could foster trust in Automattic's stewardship of WordPress.org while influencing investment trends. --- ### 🧠 Learning Styles Assessment: 1. **Visual**: Include valuation trends as charts. 2. **Logical**: Provide a timeline of legal actions for clarity. --- ### 📊 Accessibility Assessment: - **Alt Text**: Ensure all financial charts include descriptive alt text. - **Keyboard Navigation**: Verify accessibility for legal timeline navigation. --- ### 🌍 DEIB Assessment: - **Inclusive Language**: Frame the dispute to respect both parties’ perspectives. --- ### ✅ Logical Validity: - **Strengths**: - Clear causal links between legal battles and valuation changes. - **Suggestions**: - Contextualize valuation markdown with broader market trends. --- ### 🔍 DARVO Analysis: - **Not Present**: The article maintains an objective tone without evidence of denial or victim reversal tactics. --- ### 🔍 SEO Evaluation: - **Keywords**: "Automattic valuation," "WordPress.org legal dispute," "BlackRock investment." - **Meta Description**: Ensure inclusion of "BlackRock marks down Automattic amid WP Engine legal dispute." --- ## 🎯 Conclusion: BlackRock’s valuation adjustment reflects the growing challenges Automattic faces amidst legal disputes with WP Engine. This development underscores the importance of transparent governance in maintaining trust within the WordPress ecosystem. <!-- deep-read:sections end --> 📄 **Full text:** ![[Full Document Contents/Articles/BlackRock Marks Down Its Investment in Automattic by 10%|BlackRock Marks Down Its Investment in Automattic by 10%, Ivan Mehta]] ## Highlights - BlackRock has cut the worth of its stake in web hosting provider Automattic by 10%, the asset manager said in its latest quarterly disclosure report. The company, which invested in Automattic during its Series E round in 2021, valued its investment in the WordPress-hosting company at $37.5 per share, down from $41.7 per share earlier this year. The valuation reduction comes in the wake of Automattic launching [a much-publicized fight with rival WordPress hosting provider WP Engine](https://techcrunch.com/2024/11/07/wordpress-vs-wp-engine-drama-explained/). The two companies have been [locked in a legal battle](https://techcrunch.com/2024/10/02/wp-engine-sues-automattic-and-wordpress-co-founder-matt-mullenweg/) ever since Automattic’s CEO, Matt Mullenweg, blocked WP Engine from accessing WordPress.org, which hosts WordPress themes and plugins. WP Engine is currently trying to win [a preliminary injunction in its favor](https://techcrunch.com/2024/10/18/wp-engine-files-an-injuction-to-get-its-wordpress-org-access-back/) and regain access to WordPress.org. In September, Mullenweg wrote in a post on X that BlackRock owns only 0.6% of Automattic and has no voting rights in the company. ([View Highlight](https://read.readwise.io/read/01je6r7gcs5k1nm1jg761gxzvz)) - BlackRock has cut the worth of its stake in web hosting provider Automattic by 10%, the asset manager said in its latest quarterly disclosure report. BlackRock, which invested in Automattic during its Series E round in 2021, valued its investment in the WordPress hosting company at $37.5 per share, down from $41.7 per share earlier this year. The valuation reduction comes in the wake of Automattic launching [a much-publicized fight with rival WordPress hosting provider WP Engine](https://techcrunch.com/2024/11/07/wordpress-vs-wp-engine-drama-explained/). The two companies have been [locked in a legal battle](https://techcrunch.com/2024/10/02/wp-engine-sues-automattic-and-wordpress-co-founder-matt-mullenweg/) ever since Automattic’s CEO, Matt Mullenweg, blocked WP Engine from accessing WordPress.org, which hosts WordPress themes and plugins. WP Engine is currently trying to win [a preliminary injunction in its favor](https://techcrunch.com/2024/10/18/wp-engine-files-an-injuction-to-get-its-wordpress-org-access-back/) and regain access to WordPress.org. In September, Mullenweg wrote in a post on X that BlackRock owns only 0.6% of Automattic and has no voting rights in the company. ([View Highlight](https://read.readwise.io/read/01je6rw2cb0e0wgh9jmm2jbebj))