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I was offered $200M at 24 and I turned it down

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January 31, 2025

TLDR: Episode 672 features Sam Parr and Shaan Puri interviewing Matt Mullenweg, the founder of WordPress and Automattic. Topics covered include turning down a $200M offer at age 24, WordPress's period of irrelevance, battling Shopify with WooCommerce, Matt's 'Villain Arc', auditions instead of interviews, employee front-line engagement, and Matt on Deepseek.

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In the latest episode of My First Million, hosts Sam Parr and Shaan Puri engage in a deep discussion with Matt Mullenweg, the founder of WordPress and Automattic. At just 24 years old, Matt faced a pivotal moment when he turned down a $200 million acquisition offer. The conversation dives into his journey, insights on entrepreneurship, and the lessons learned over nearly two decades in tech.

Key Topics Covered

1. Turning Down a Fortune

  • Significant Offer: At 24, after only raising $1 million, Matt received an offer to sell WordPress for $200 million.
  • Motivation to Stay: His team believed in the company’s potential for growth, deciding to focus on making it bigger rather than accepting a hefty payday.
  • Personal Impact: Although Matt initially struggled financially, his decision ultimately allowed him to invest in WordPress’s future, which has now grown to power 45% of the internet.

2. The Early Years and Challenges

  • Days of Irrelevance: Matt reflects on the early days of WordPress, dubbing it the "1000 days of irrelevance" where the product wasn’t well known.
  • Bootstrapping Success: He organized upgrade parties to engage the community, revealing that significant early successes often come after extensive groundwork, challenging the notion of overnight success.

3. Strategic Acquisitions

  • Transformative Acquisition: The discussion leads to the acquisition of WooCommerce, emphasizing its value. WooCommerce has allowed Automattic to tap into the e-commerce space, generating over $30 billion in goods sold.
  • Competing with Giants: Matt contrasts WooCommerce with Shopify, acknowledging Shopify's success while outlining the unique advantages of open-source models.

4. Open Source Philosophy

  • Long-Term Vision: Mullenweg discusses the moral implications of open-source software and its benefits over proprietary solutions, arguing that the freedom it provides nurtures innovation and community.
  • Community Reliance: He asserts that the open-source model fosters a larger ecosystem, benefiting various stakeholders long-term.

5. Unique Hiring Practices

  • Auditions Over Interviews: Automattic employs a distinctive hiring strategy, favoring auditions where prospective employees complete trial projects instead of traditional interviews.
  • Culture of Participation: Every new hire engages in customer support during their onboarding process, fostering a culture of customer-centric development.

6. Confronting Industry Drama

  • Recent Controversies: The episode touches on a recent conflict with WP Engine, revealing tensions over brand identity and trademark issues. Matt maintains that protecting the open-source community is vital, even when it leads to disputes.

Practical Insights for Entrepreneurs

  • Stay Visionary: Turning down short-term gains can lead to far greater long-term success if aligned with a strong vision.
  • Cultivate Community: Building a supportive ecosystem can enhance product growth and sustainability.
  • Innovative Hiring: Implementing creative hiring practices can attract diverse talent and improve company culture.
  • Prioritize Customer Engagement: Directly interacting with customers is essential for product refinement and maintaining focus on user needs.
  • Value of Open Source: Embrace open-source practices for long-term innovation and community building, which can create significant competitive advantages.

Conclusion

Matt Mullenweg’s story is one of resilience, vision, and belief in the power of community-driven technology. His insights into open-source philosophy, strategic growth, and the importance of staying grounded in customer needs offer valuable lessons for current and aspiring entrepreneurs. This episode is a must-listen for those interested in tech and startup culture, providing a blueprint for building something that lasts.

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