WordPress vs. WP Engine: Bombshell Court Docs Reveal Mullenweg’s Alleged “Nuclear War” Tactics and Royalty Fee Secrets

The already explosive legal war between WordPress co-founder Matt Mullenweg and WP Engine just took a dramatic turn — and the latest court filings read like a Silicon Valley thriller. In newly amended documents, WP Engine accuses Mullenweg of orchestrating a calculated campaign to extract royalty payments from 10 competing hosting companies, attempting to get Stripe to drop WP Engine, and threatening a “nuclear war” against anyone who defied him.

The Core of the Feud: WordPress Trademark Royalties

At the heart of the dispute is Mullenweg’s belief that WP Engine profits from the open-source WordPress project without giving back to the community. He demanded the hosting giant pay 8% of its monthly gross revenues as a royalty fee for using the WordPress brand — a rate WP Engine now claims was plucked from thin air.

“Based on a business analysis,” Mullenweg told TechCrunch Disrupt 2024, explaining the fee. “If you estimate that would be about $32 million — they still would have been free cash-flow positive… we felt like that was a fair amount.”

But WP Engine’s latest filing suggests the number was less science, more gut instinct: “what he thought WP Engine could afford to pay.”

The “10-Host” Plot Thickens

Perhaps the most eyebrow-raising revelation? WP Engine alleges that Mullenweg wasn’t just targeting them — he had a hit list of 10 other hosting companies in his sights for similar royalty demands.

The filing claims that Newfold Digital (parent of Bluehost, HostGator, and others) is already paying Automattic for trademark use, and that Mullenweg was in talks with additional unnamed providers. Internal emails referenced in the complaint suggest a coordinated strategy to pressure rivals into compliance.

The Stripe Shakedown

In a move straight out of a corporate espionage novel, WP Engine alleges Mullenweg personally emailed a Stripe executive in an attempt to get the payment processor to cancel WP Engine’s contract. The timing? Right after WP Engine filed its lawsuit against Automattic.

If true, this could be a major legal liability — using financial infrastructure as a weapon in a corporate feud crosses into dangerous territory.

“Carrot or Stick” — Mullenweg’s Alleged Playbook

WP Engine’s filing paints a picture of Mullenweg as a ruthless strategist, willing to deploy aggressive tactics to enforce his will. Among the newly revealed quotes:

• “If they don’t take the carrot, we’ll give them the stick.” — Alleged internal Automattic correspondence.
• “Nuclear war” — Mullenweg’s reported description of his approach to WP Engine’s defiance.

The company also claims Mullenweg threatened to steal WP Engine’s customers if they didn’t comply with his demands — a brazen move for the steward of an open-source project.

Automattic Fires Back

Automattic, for its part, has filed counterclaims alleging that WP Engine has been abusing the WordPress trademark and engaging in deceptive marketing. The company declined to comment on the latest allegations.

The legal battle, which began in October 2024, has already seen twists and turns, with key information only coming to light through the discovery process. WP Engine’s third amended complaint includes previously sealed details, now unredacted, that paint a far more aggressive picture of Mullenweg’s actions.

Why This Matters

This isn’t just a corporate squabble — it’s a fight over the soul of WordPress. Mullenweg, as the project’s co-founder, wields immense influence over the open-source community. If he’s leveraging that power to extract payments from hosting companies, it could set a dangerous precedent.

For WP Engine, the stakes are existential. The company powers millions of WordPress sites and has long been a major player in the ecosystem. But if Mullenweg succeeds in his alleged campaign, it could reshape the hosting landscape — and the future of WordPress itself.

The Bigger Picture

The WordPress community is watching closely. Mullenweg’s actions, if proven, could alienate the very developers and companies that have made WordPress the dominant CMS it is today. Meanwhile, WP Engine’s allegations raise questions about the balance of power in open-source projects — and whether their leaders can be trusted to act in the community’s best interests.

As the legal battle rages on, one thing is clear: this is far from over. With new revelations emerging and both sides digging in their heels, the WordPress vs. WP Engine saga is shaping up to be one of the most dramatic tech legal battles in recent memory.

Tags: WordPress, WP Engine, Matt Mullenweg, Automattic, trademark dispute, royalty fees, open-source, hosting companies, Stripe, legal battle, nuclear war, carrot and stick, Bluehost, HostGator, Newfold Digital, TechCrunch Disrupt, Silicon Valley drama, corporate espionage, CMS, community backlash, power play, bombshell court docs, ecosystem shakeup

Viral Phrases:

• “Nuclear war” against WP Engine
• “If they don’t take the carrot, we’ll give them the stick”
• Mullenweg’s alleged hit list of 10 hosting companies
• The Stripe shakedown
• 8% royalty fee plucked from thin air
• Stealing customers as a threat
• The soul of WordPress at stake
• Corporate feud or community betrayal?
• Open-source power grab
• The legal thriller no one saw coming

,