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Founder Dorsey slams Twitter board over ‘dysfunction’ amid Elon Musk takeover push
By Arghyadeep Dutta - Apr 18, 2022, 11:21 PM ET
Last Updated - Feb 22, 2024, 01:05 PM EST
Dorsey to leave Twitter’s board at 2022 meeting of shareholders scheduled for late May
Musk criticized, saying he wouldn’t pay $0 to the board of directors once he acquires the company
Twitter Inc (NYSE: TWTR) founder and former ch ief executive Jack Dorsey slammed the social media company’s board on Sunday as directors are tasked with evaluating Elon Musk’s $43 billion takeover bid.
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Dorsey tweeted, “It’s consistently been the dysfunction of the company,” criticizing the board in response to a post in which a user described the “plots and coups” that played out early on in the history of Twitter’s board among its founding executives.
Dorsey, the co-founder of the social media company, served an earlier stint as its CEO but was fired from the role in 2008 and replaced with another one of his co-founders. He returned to lead the company in 2015. He resigned from his second stint last November.
Later, when a user asked if the former CEO and founder was “allowed to say this” about Twitter’s board, Dorsey replied “no.”
Earlier, he responded to another tweet by a user quoting venture capitalist Fred Destin’s “Silicon Valley proverb”: “Good boards don’t create good companies, but a bad board will kill a company every time,” to which Dorsey responded, “big facts.”
The tweets were some of the most direct criticisms from Dorsey, who still sits on Twitter’s board but will leave when his current term expires at the 2022 shareholders’ meeting, which is scheduled for late May.
Although the micro-blogging platform’s former CEO said, “I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it,” Dorsey has yet to comment directly on Tesla Inc (NASDAQ: TSLA) CEO Musk’s $43 billion offer to buy the company and take it private.
Musk taking jibe at Twitter’s board
Twitter’s board on Friday adopted a limited duration shareholder rights plan, which is often known as the ‘poison pill’ in an effort to protect itself from a potential hostile takeover, that would sell shares at a discount if any shareholder amasses a stake of more than 15%.
Musk, who has over a 9% stake in the company before his takeover bid, tweeted “Love Me Tender,” an Elvis Presley song, after Twitter announced the new strategy, stepping up his own criticism on the board.
The Tesla CEO has demanded that Twitter’s board allow shareholders to vote on his offer.
On Monday, Musk took a swipe at the social media platform’s board and said he wouldn’t pay $0 to the board of directors if he acquires the social media company.
The billionaire responded to a user who shared a chart showing that Twitter chairman Bret Taylor and other board members, except Dorsey, collectively hold 77 shares of the company.
“Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders,” Musk said.
Dorsey owns just over 2.2%, according to FactSet data.
Picture Credit: QZ
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