BlackRock Lowers Valuation of Automattic Stake Amidst WordPress Hosting Rivalry

Matilda
BlackRock Lowers Valuation of Automattic Stake Amidst WordPress Hosting Rivalry
In a move that has sent ripples through the web hosting industry, investment giant BlackRock has slashed the valuation of its stake in Automattic, the company behind the ubiquitous WordPress platform, by 10%. This news comes amidst a highly publicized legal battle between Automattic and its competitor, WP Engine, raising questions about Automattic's future growth trajectory. Investment Downgrade: Reflecting Market Reassessment BlackRock's initial investment in Automattic came during the company's Series E funding round in 2021. The asset manager initially valued its stake at $41.7 per share. However, their latest quarterly disclosure report reveals a revised valuation of $37.5 per share, marking a significant 10% decrease. This decision by BlackRock signifies a potential reevaluation of Automattic's market position and future prospects. Legal Battle with WP Engine Casts a Shadow The timing of BlackRock's valuation downgrade coincides with Automattic's ongoing legal…