Rumors of Changes in WooCommerce's Ownership
In the managed WordPress hosting landscape, there's a notable consensus among industry leaders: retailers are often their most profitable clients.
This insight has sparked considerable interest, particularly amid rumors surrounding the popular eCommerce plugin, WooCommerce.
On September 9, a report from Online Store News unveiled that negotiations are taking place between Automattic and at least two private equity firms regarding a possible partial or complete sale of WooCommerce.
Although Automattic has yet to make any official comments, momentum around WooCommerce's potential divestiture has been building since early August. As the narrative unfolds, it appears these discussions are more than mere speculation.
What This Means for Store Owners and Hosting Partners
For store owners, there’s no immediate cause for concern as the WooCommerce plugin remains licensed under GPL, ensuring that businesses can keep operating smoothly. However, the implications for hosting providers could be significant.
WooCommerce has transitioned from a simple plugin to a comprehensive marketplace that offers extensions, payment solutions, and various hosting tiers through WooCommerce.com, while still allowing for free downloads.
According to Online Store News, WooPayments processed over $12 billion in gross merchandise volume in 2025, highlighting the platform's financial success. Furthermore, its extension marketplace boasts higher profit margins than other products within Automattic's portfolio, making it an attractive target for investors rather than just a code repository.
Historically, Automattic has viewed WooCommerce as a loss leader within its ecosystem. A serious investment could change this, impacting not only WooCommerce but also every developer and hosting partner linked to it.
Potential Buyers and Market Dynamics
The significance of the term “hosting partner” comes into play here. Companies like Nexcess and SiteGround offer tailored packages designed specifically for Managed WooCommerce, effectively minimizing the complexities of running an online store.
On September 1, sources disclosed that Vista Equity Partners is reportedly exploring discussions with Automattic. Additionally, Newfold Digital, which owns Bluehost and Web.com, has emerged as a key player, potentially interested in acquiring WooCommerce due to its strong foothold in the WordPress hosting market.
An acquisition by Newfold could present challenges for competitors such as SiteGround, Hostinger, and Kinsta, which are currently vying with Bluehost in the managed WooCommerce space. If WooCommerce comes under Newfold’s umbrella, it would mean a direct competitor gains control over a significant eCommerce product.
Furthermore, WP Engine's interest in WooCommerce cannot be ignored. Reports indicate that at least two companies are assessing potential commercial partnerships with WooCommerce, suggesting that integration of WP Engine’s infrastructure with WooCommerce could be plausible, though it would likely require thorough evaluation.
However, it’s important to note that ongoing legal disputes between WP Engine and WooCommerce, where WooCommerce, Inc. is a counterclaimant, remain unresolved as of now, complicating potential collaborations.
The Bigger Picture: Market Trends and Customer Churn
A recent analysis from StoreLeads revealed 4,047,205 active WooCommerce stores as of September 4, a decrease from 4,776,386 two years earlier, reflecting a loss of about 15%. This decline is further characterized by a net loss of around 5,500 merchants, indicating growing competition from platforms like Shopify.
Much of this churn seems to occur within the $2 million to $20 million revenue bracket, a primary demographic for WooCommerce clients who often rely on specialized hosting plans.
While the open-source foundation of WooCommerce will remain intact under the GPL, acquisitions could fundamentally shift the commercial framework. Key elements such as licensing agreements for extensions and the strategic role of WooPayments could be re-evaluated, potentially leading to significant changes for hosting services and eCommerce clients alike.
In a recent statement, an Automattic spokesperson reiterated that the company will not comment on internal discussions but emphasized WooCommerce as a cornerstone of its mission to democratize both publishing and commerce. Meanwhile, indications of upcoming partnerships or strategy summits may signal future directions for hosting providers.
