Twitter CEO Jack Dorsey speaks to students at the city hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.
Anushree Fadnavis | Reuters
Before Twitter CEO Jack Dorsey criticized the company’s board in a series of tweets on Sunday as the team is now tasked with evaluating a takeover bid from billionaire Elon Musk.
Responding to another Twitter user describing a “conspiracy and coup” that took place very early in Twitter’s board history, Dorsey answered“it’s always been a mess of the company’s operations.”
Before that, he replied to another tweet in the same thread. It quotes venture capitalist Fred Destin quoting what he calls a “Silicon Valley maxim”: “A good board doesn’t make a good company, but a bad board kills a company.” ty every time.”
Dorsey replied, “the great truth.”
Dorsey still sits on Twitter’s board but plans to leave when his term ends at the 2022 shareholder meeting, scheduled for late May.
The Board of Directors is currently reviewing Tesla CEO Musk’s $43 billion offer to buy the company and go private. It is also reported to bring additional interest. On Friday, Twitter’s board of directors through a so-called poison – a term shareholder rights plan that allows shareholders to purchase shares at a discount if an individual or entity accumulates at least 15% of the common stock outstanding without prior approval of Board Department. Musk recently disclosed more than 9% stake in the company before offering to buy the company.
The board of directors said the plan would not prevent it from making a deal in the best interests of the company and its shareholders, but it would “reduce the likelihood that any organization, individual or group will win the deal.” gained control of Twitter through open market accumulation without paying all shareholders an appropriate controlling surplus or without providing the Board of Directors sufficient time to make informed judgments and take actions in the best interest of shareholders.”
Dorsey, who also co-founded the company, previously served as its CEO but has since was fired from this role in 2008 and was replaced by another of his co-founders. He give back to lead the company in 2015.
Musk tweeted Saturday that, with Dorsey leaving the board, “the Twitter board owns virtually no stock! Objectively, their economic interests are simply not matched. with shareholders.”
Dorsey recently noticed that he “ended up with very little of the company” for having taken a lot of his shares when he was fired in 2008. He said he also returned 1% of the company to employees in 2015. However, Dorsey remains the largest internal stakeholder. of the company after a 9.1% stake in Musk, with about a 2.25% stake, according to FactSet. Then Silver Lake, whose CEO Egon Durban is a Twitter board member, owns 0.26%, according to FactSet. Vanguard Group is the largest institutional shareholder, with a 10.29% stake in the company, according to FactSet.
Twitter did not immediately respond to a request for comment.