Automattic, the parent company of WordPress.com, has sold $50 million as part of a secondary offering through a deal led by Tiger Global Management. Some of Automattic’s early investors will be able to cash out their shares and another stakeholder is being added to the company.
According to TechCrunch, the shares offering was not necessary to raise funds. The company is generating cash and is growing at a rapid pace. Automattic founder Matt Mullenweg said that the stockholders that participated in the secondary sale continues to hold on to the vast majority of their shares.
Lee Fixel of Tiger Global led this investment. Some of the other Internet companies that Tiger Global recently invested in are Eventbrite and SurveyMonkey. Tiger Global was also an investor in other tech companies like Warby Parker, Square, Facebook, and LinkedIn.
WordPress powers a number of large websites like Pulse 2.0, TechCrunch, Mashable, and Forbes. It was also the platform that powered Groupon initially.