Atlassian's Co-Founders Face Greatest Test Amidst Valuation Crisis and Succession Planning Concerns

Atlassian founders Mike Cannon-Brookes and Scott Farquhar face their greatest test as the company's valuation falls by nearly 20% this year. Cannon-Brookes must keep the company innovative and retain customers while juggling his extracurricular interests. Farquhar must ensure the company's resilience to potential risks and succession planning. Despite their differences, the co-CEO model has largely worked for the pair, who have built a $75 billion global company from university students using credit card debt.

Atlassian, the $75 billion global software company co-founded by Mike Cannon-Brookes and Scott Farquhar, is facing its greatest challenge yet. The company's valuation has fallen by nearly 20% this year, presenting significant hurdles for the co-CEOs as they navigate through the complex landscape of tech innovation, customer retention, and succession planning.

Mike Cannon-Brookes, the CEO, is tasked with keeping Atlassian innovative and retaining its customer base. He has been making headlines with his high-profile lifestyle, including the purchase of a private jet in March 2025, which has drawn criticism despite his justification that it helps him be a "present dad" and ensures better personal security. Cannon-Brookes has also been facing scrutiny over his eco-friendly persona, as the private jet purchase seemed to contradict his climate advocacy stance. Additionally, Cannon-Brookes has been dealing with the fallout from the recent layoff of 150 employees, which he attributed to AI, sparking speculation about the impact on stock prices and the company's overall performance [1].

Scott Farquhar, the co-founder and former co-CEO, is now focusing on ensuring the company's resilience to potential risks and succession planning. He recently spoke at the National Press Club in Canberra, where he addressed the "personal and professional falling out" rumors between him and Cannon-Brookes, dismissing them as "bullshit." Farquhar emphasized the importance of succession planning and the need for tech companies to be resilient to potential disruptions. He also discussed his vision for Australia's role in the tech sector, advocating for more data centers, increased tech education, and regulatory barriers removal for AI and new ways of working [2].

Despite their differences, the co-CEO model has largely worked for Cannon-Brookes and Farquhar. They have built a successful company from humble beginnings, using credit card debt as their initial funding. The co-CEO dynamic has allowed them to complement each other's strengths, with Cannon-Brookes being animated and intense, and Farquhar being thoughtful and generous. However, the real test for both men lies ahead, as they must navigate the challenges posed by the company's falling valuation and ensure its long-term success.

References:
[1] https://www.financialexpress.com/life/technology/who-is-mike-cannon-brookes-atlassian-ceo-fires-150-employees-via-brutal-video-after-buying-75m-private-jet/3933695/
[2] https://www.smh.com.au/technology/tech-bros-or-broken-farquhar-and-cannon-brookes-face-greatest-test-20250728-p5miek.html