"Negotiation" invokes visions of term sheets and boardrooms but what Matt actually meant by "negotiation" (as revealed in the interview) was emails in which he expressed displeasure at the lack of contribution from WP Engine, and only in the days before WordCamp did any sort of terms arrive at the table (the 8% demand). Matt has acknowledged he escalated things in the space of days, not years. The emails read out are birthday party invites, not term sheets.

I agree that WP Engine cannot be characterised as "good guys" given it's a bottom-line driven machine that will chew up and spit out all in its path, and Matt has earned credibility through decades of community-minded WordPress stewardship, but let's not pretend this is some business deal that went sour, it's Matt using every inch of leverage he has to cause WP Engine pain because of his moral objections to the private-equity machine taking money away from his community-minded company.

Obviously WP Engine were never going to pay Automattic tens of millions of dollars per year, Matt knows that, we know that, it's a side show. He was just saying things to ruin their day. Just like the millions of dollars per year in costs incurred running WordPress.org that Matt has wheeled out to justify causing WP Engine pain by cutting them off from plugin updates (Cloudflare have offered to host WordPress.org for free; Matt has not accepted the offer).