Matt Mullenweg, the CEO of Automattic, has recently intensified tensions with WP Engine, a prominent hosting company, by rescinding an earlier offer for an 8% licensing deal. This shift suggests a potential corporate acquisition of WP Engine by Automattic. In a recent interview, Mullenweg indicated that Automattic is now seeking a greater share of WP Engine’s annual revenue or equivalent contributions to the WordPress project, stating, “That deal’s not on the table anymore. We’re seeking more, not 8%.” He expressed frustration over what he perceives as WP Engine's lack of leverage in negotiations, hinting that a takeover could be on the horizon. The conflict escalated after Mullenweg publicly criticized WP Engine during his keynote address at WordCamp US 2024, labeling the company as a “cancer to WordPress.” He accused WP Engine of profiting from the WordPress ecosystem without adequately contributing to it, contrasting their contributions with those of Automattic. Mullenweg's remarks have been fueled by years of failed negotiations, leading him to adopt a more aggressive public stance against WP Engine and its main investor, Silver Lake. In response to Mullenweg's accusations, WP Engine has remained relatively quiet but did send a cease and desist letter to Automattic, claiming that Mullenweg's demands for significant financial contributions were baseless and threatening. WP Engine defended its contributions to the WordPress community, highlighting its financial support for events and educational resources. The situation further escalated when Automattic issued its own cease and desist letter, alleging that WP Engine was violating the “WordPress” and “WooCommerce” trademarks. Automattic claims that WP Engine has built a substantial business based on unauthorized use of these trademarks and is demanding compensation for lost licensing revenue. As tensions mounted, Mullenweg took drastic measures by banning WP Engine from accessing WordPress.org resources, which disrupted services for WP Engine customers. This action was met with accusations from WP Engine that Mullenweg was misusing his control over WordPress to harm their business. Mullenweg countered these claims by alleging that WP Engine had been siphoning revenue from WooCommerce partnerships. Despite the ongoing conflict, Mullenweg remains resolute, stating that he feels justified in his public criticisms and is prepared for a potential legal battle or corporate takeover. The situation continues to evolve, with both companies navigating a complex landscape of trademark disputes, public relations challenges, and the future of their relationship within the WordPress ecosystem.