In the wake of Elon Musk’s takeover bid, Twitter CEO Jack Dorsey breaks his quiet and criticises the board.
Jack Dorsey, co-founder of Twitter, has finally spoken up. As Tesla and SpaceX CEO Elon Musk puts pressure on the board to let him buy the microblogging platform for $43 billion, he has slammed the board as “consistently the dysfunction of the company.”
Dorsey, who departed Twitter in November last year to give over the reins to Indian-origin Parag Agrawal, is still a board member with a 2.2 percent stake till next month.
“It (the board) has consistently been the dysfunction of the company”” Dorsey remarked late Sunday in response to a Twitter user.
According to Gary Tan, a venture capitalist, a poorly governed board “may actually make a billion dollars in value disappear.”
“No,” Dorsey answered to a Twitter user who asked if he was permitted to speak publicly about the board.
“With Jack departing, the Twitter board together has almost no shares!” Musk said.
“Objectively, their economic interests are simply not aligned with shareholders,” the Tesla CEO posted.
Block (formerly Square), Dorsey’s company, is now developing a hardware crypto wallet to let customers “safely own and manage their Bitcoin.”
Meanwhile, Musk has stated that the Twitter Board of Directors should be more concerned about other potential bidders than himself, who has made a fair offer to buy the microblogging network for $43 billion.
He was responding to a Twitter follower who claimed that the business’s board of directors has threatened to decrease its shareholders’ stake in the company, which he described as “criminal carelessness.”
“In fairness to the Twitter board, this might be more of a concern about other potential bidders vs just me”.
Musk is one of Twitter’s major stockholders, with a 9.2 percent stake.
Last Monday, Vanguard Group said that its funds now possess a 10.3 percent investment in Twitter, making it the company’s largest stakeholder.
Al-Waleed bin Talal, the Saudi prince who turned down Elon Musk’s offer, owns around 5.2 percent of Twitter.
To prevent Musk from buying Twitter outright, the company’s board of directors has implemented a “poison pill” approach.