Houston-born Matt Mullenweg joined the Greater Houston Partnership for a fireside chat on his tech company Automattic's success of distributed work. Photo via ma.tt

The pandemic and the measures companies have taken to prevent the spread of COVID-19 have opened employers eyes to non-traditional ways of working. An increased percentage of the workforce pivoted to remote working this year — in some cases, this was the first time employees were allowed to work from home.

But not having a traditional office setup is far from new to Houston native Matt Mullenweg, founder of WordPress. He started his company with remote team members basically from day one. In a virtual fireside chat with Scott McClelland, president of H-E-B Food & Drug, for Greater Houston Partnership's Houston NEXT: An ERG Summit last month, Mullenweg describes why he feels confident that a remote — or distributed, has he defines it — workforce is the future.

"Words are really important, and when I hear the word 'remote,' I think there's a central office and then there's someone who's not part of it," Mullenweg says during the chat. "So, we were trying to think of something that captured the fact that we were close to each other in our work — we're just not physically in the same place most of the time. 'Distributed' is what we came up with."

For Mullenweg, this way of running his business was advantageous for the company at its founding in 2000. Since those early days, Automattic, WordPress's parent company, has raised around $700 million in venture funding and made around 20 acquisitions. This success, Mullenweg says, is in part due to distributed work.

"All of this is designed to create a really robust network so that the work can continue regardless of location or anything," Mullenweg says on his workforce structure. "This especially during the early days, allowed us to work two or three times faster than our competitors because when they were doing five days of work a week, we were doing 15 days of work a week."

Mullenweg's plan for distributed work has been the subject a series of blogs, a podcast, and even a TED Talk. As passionate as he is that it is the future of the workforce, he realizes there's a process to getting there, and it's going to take time. He explains a five-tiered process that focuses on strategic culture changes and tech optimization.

"I think you need to have a culture and a way of working that allows people who aren't physical co-present with their colleagues to be productive," Mullenweg says. "The truth is not every company is there yet."

While Mullenweg always believed the rise of distributed work would reach milestones throughout his lifetime, the pandemic might be accelerating crucial steps toward the growth of this type of workforce. Especially since, as Mullenweg explains, this isn't the last major event that's going to occur and prevent in-person work.

"We're all hoping COVID to be gone as soon as possible, but this isn't the last thing like this. I'm sure there are going to be other issues that require us to be more decentralized in the future," Mullenweg says. "If you can get good at that as an organization, you'll be primed to succeed in the coming decades as a business."

Ultimately, distributed work has a lot of potential in the modern workforce, and the structure can do wonders for business advancement as well as employee moral.

"One thing we've found is that when people are really happy and fulfilled, they bring their best selves to work — they're more creative and have more energy," Mullenweg says.

Houston NEXT: An ERG Summit - Fireside Chat with Matt Mullenwegwww.youtube.com

Mayor Sylvester Turner talked parks, innovation, firefighter salaries, and more at the Greater Houston Partnership's State of the City. Natalie Harms/InnovationMap

5 things Mayor Turner promised Houston in his State of the City Address

Looking forward

In the 2019 State of the City Address hosted by the Greater Houston Partnership on May 20, Mayor Sylvester Turner took the stage at the Marriott Marquis in front of over 1,500 Houstonians.

Some of the obvious topics were of course on the table — pension reform, hurricane recovery, job growth — but Mayor Turner surprised attendees with the announcement of a public-private parks program and again alluded to the re-envisioned of Astroworld.

Here's what all the mayor promised in his address.

Public-private partnerships for Houston parks

Houston's major parks have undergone major transformations lately backed by private investments — Buffalo Bayou Park, Memorial Park Conservancy, and Bayou Greenways 2020, to name a few — but the city would like to shift focus to smaller, neighborhood parks across the city. To do this, Mayor Turner called for 50 companies to sponsor 50 parks.

"Today, I am asking the Greater Houston Partnership, the Houston Parks Board, and the Parks Department, to help me bring together 50 companies to form a citywide coalition for our neighborhood parks — primarily in underserved communities," Mayor Turner says.

Scott McClelland, president of HEB Food and Drug and board chair of the GHP, offered up HEB as a corporate partner for the program on the spot, despite the formal details of the program not yet being disclosed. Mayor Turner did specify that the park sponsorship would be a commitment over a few years.

"The 50 for 50 effort will touch every district in the city. All Houstonians should have easy access to welcoming, well-maintained, safe, and fun parks," he says.

A developed innovation corridor and a resurgence of AstroWorld

In both in his introductory address and fireside chat with McClelland, Mayor Turner talked about the emergence of Houston's innovation ecosystem. He cites the 140 percent increase in technology jobs as well as the 3,000 reported startups that call Houston their home. He mentions that Silicon Valley-based accelerator program Plug and Play is preparing to enter the market and another 25 million investment from the Houston Exponential fund of funds is expected.

"We're not walking; we're sprinting," Mayor Turner says. "There is no better place for an [innovation] ecosystem to take place than Houston."

Mayor Turner also credited Rice University's The Ion project as a major source of growth for the city's innovation ecosystem.

"We are building an innovation hub and corridor — in collaboration with academia, thank you, Rice, for loaning us the Sears building on South Main, and the energy and tech companies."

When discussing the innovation district, the mayor also gave a shout out to Travis Scott for being the "instigator" of a new AstroWorld-like theme park the city has in the works, but no details were disclosed in the address.

Rethinking Houston's transportation system

As Houston's population continues to grow, Houstonians spend more and more time in their cars fighting traffic. The mayor called for action to reimagine Houston's transportation.

"Our city has changed, the region is changing, and our transportation, transit, and mobility must change," he says. "People want options, and we must give them options."

Mayor Turner alluded to the Metro Next plan that will be on the ballot this November. While he didn't go into much detail, he encouraged support for the plan.

A raise for the Houston Fire Department

McClelland started the fireside chat with a question about the state of things after Proposition B's repeal following being deemed unconstitutional. The proposition, which originally passed last fall, would have matched Houston firefighters' salaries with police officers.

The mayor says that with the repeal, no layoffs or job cuts will be made within the Houston Fire Department. He recognizes that firefighters are in need of a raise, but it must be one the city can afford.

"Our firefighters are deserving of a pay raise," Mayor Turner says. "What I've put forth is 9.5 percent over three years, but look, my door is open."

The best is yet to come

Mayor Turner wrapped up his address on a positive note, saying that the city's growth will continue.

"The state of our city is strong, resilient, and sustainable," he says. "The best for us as a city has yet to come."

All of these initiatives on the mayor's agenda are working for toward uniting and enhancing Houston.

"We are building one complete city," he says. "And we work together, we win."

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Houston startup taps strategic partner to produce novel 'biobased leather'

cleaner products

A Houston-based next-gen material startup has revealed a new strategic partnership.

Rheom Materials, formerly known as Bucha Bio, has announced a strategic partnership with thermoplastic extrusion and lamination company Bixby International, which is part of Rheom Material’s goal for commercial-scale production of its novel biobased material, Shorai.

Shorai is a biobased leather alternative that meets criteria for many companies wanting to incorporate sustainable materials. Shorai performs like traditional leather, but offers scalable production at a competitive price point. Extruded as a continuous sheet and having more than 92 percent biobased content, Shorai achieves an 80 percent reduction in carbon footprint compared to synthetic leather, according to Rheom.

Rheom, which is backed by Houston-based New Climate Ventures, will be allowing Bixby International to take a minority ownership stake in Rheom Materials as part of the deal.

“Partnering with Bixby International enables us to harness their extensive expertise in the extrusion industry and its entire supply chain, facilitating the successful scale-up of Shorai production,” Carolina Amin Ferril, CTO at Rheom Materials, says in a news release. “Their highly competitive and adaptable capabilities will allow us to offer more solutions and exceed our customers’ expectations.”

In late 2024, Rheom Materials started its first pilot-scale trial at the Bixby International facilities with the goal of producing Shorai for prototype samples.

"The scope of what we were doing — both on what raw materials we were using and what we were creating just kept expanding and growing," founder Zimri Hinshaw previously told InnovationMap.

Listen to Hinshaw on the Houston Innovators Podcast episode recorded in October.

Justice Department sues to block Houston-based HPE's $14B buyout of Juniper

M&A News

The Justice Department sued to block Hewlett Packard Enterprise's $14 billion acquisition of rival Juniper Networks on Thursday, the first attempt to stop a merger by a new Trump administration that is expected to take a softer approach to mergers.

The Justice complaint alleges that Hewlett Packer Enterprise, under increased competitive pressure from the fast-rising Juniper, was forced to discount products and services and invest more in its own innovation, eventually leading the company to simply buy its rival.

The lawsuit said that the combination of businesses would eliminate competition, raise prices and reduce innovation.

HPE and Juniper issued a joint statement Thursday, saying the companies strongly oppose the DOJ's decision.

“We will vigorously defend against the Department of Justice’s overreaching interpretation of antitrust laws and will demonstrate how this transaction will provide customers with greater innovation and choice, positively change the dynamics in the networking market,” the companies said.

The combined company would create more competition, not less, the companies said.

The Justice Department's intervention — the first of the new administration and just 10 days after Donald Trump's inauguration — comes as somewhat of a surprise. Most predicted a second Trump administration to ease up on antitrust enforcement and be more receptive to mergers and deal-making after years of hypervigilance under former President Joe Biden’s watch.

Hewlett Packard Enterprise announced one year ago that it was buying Juniper Networks for $40 a share in a deal expected to double HPE’s networking business.

In its complaint, the government painted a picture of Hewlett Packard Enterprise as a company desperate to keep up with a smaller rival that was taking its business.

HPE salespeople were concerned about the “Juniper threat,” the complaint said, also alleging that one former executive told his team that “there are no rules in a street fight,” encouraging them to “kill” Juniper when competing for sales opportunities.

The Justice Department said that Hewlett Packard Enterprise and Juniper are the U.S.'s second- and third-largest providers of wireless local area network (WLAN) products and services for businesses.

“The proposed transaction between HPE and Juniper, if allowed to proceed, would further consolidate an already highly concentrated market — and leave U.S. enterprises facing two companies commanding over 70% of the market,” the complaint said, adding that Cisco Systems was the industry leader.

Many businesses and investors accused Biden regulatory agencies of antitrust overreach and were looking forward to a friendlier Trump administration.

Under Biden, the Federal Trade Commission sued to block a $24.6 billion merger between Kroger and Albertsons that would have been the largest grocery store merger in U.S. history. Two judges agreed with the FTC’s case, blocking the proposed deal in December.

In 2023, the Department of Justice, through the courts, forced American and JetBlue airlines to abandon their partnership in the northeast U.S., saying it would reduce competition and eventually cost consumers hundreds of millions of dollars a year. That partnership had the blessing of the Trump administration when it took effect in early 2021.

U.S. regulators also proposed last year to break up Google for maintaining an “abusive monopoly” through its market-dominate search engine, Chrome. Court hearings on Google’s punishment are scheduled to begin in April, with the judge aiming to issue a final decision before Labor Day. It’s unclear where the Trump administration stands on the case.

One merger that both Trump and Biden agreed shouldn’t go through is Nippon Steel’s proposed acquisition of U.S. Steel. Biden blocked the nearly $15 billion acquisition just before his term ended. The companies challenged that decision in a federal lawsuit early this year.

Trump has consistently voiced opposition to the deal, questioning why U.S. Steel would sell itself to a foreign company given the regime of new tariffs he has vowed.