Automattic, the company behind publishing platform WordPress.com, has sold $50 million in a secondary offering led by investment management firm Tiger Global. The sale will allow some early investors and employees to get cash in exchange for their shares, while adding another stakeholder in the company.
The share offering wasn’t necessary to raise funds for the company, according to Automattic founder Matt Mullenweg. In a blog post, he wrote that the company is “healthy, generating cash, and already growing as fast as it can, so there’s no need for the company to raise money directly.” He also noted that the minority of stockholders who participated in the secondary sale continue to hold on to the vast majority of their shares.
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