Twitter CEO Jack Dorsey addresses students during a town hall meeting at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.
Anushree Fadnavis | Reuters
Former Twitter CEO Jack Dorsey slammed the company’s board in a series of tweets on Sunday as the group is now tasked with evaluating a takeover bid from billionaire Elon Musk.
Responding to another Twitter user describing the “plots and coups” that took place early in the history of the Twitter board, Dorsey responded“That’s always been the dysfunction of the business.”
Earlier, he replied to another tweet in the same thread. He quoted venture capitalist Fred Destin quoting what he called a “Silicon Valley proverb”: “Good advice doesn’t create good businesses, but bad advice kills a business every time.”
Dorsey replied, “great facts”.
Dorsey still sits on Twitter’s board, but plans to leave once his term expires at the 2022 shareholder meeting, scheduled for late May.
The board is currently considering Tesla CEO Musk’s $43 billion offer to buy the company and take it private. It would also have generated additional interest. On Friday, Twitter’s board passed a so-called poison pill — a time-limited shareholder rights plan that would allow shareholders to buy shares at a discount if a person or entity accrues at least 15% outstanding common shares without the prior approval of the board. Musk recently revealed a more than 9% stake in the company ahead of its takeover bid.
The board said the plan would not prevent it from reaching a deal in the best interests of the company and its shareholders, but it would “reduce the likelihood that any entity, person or group takes control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without giving the board sufficient time to make informed judgments and take actions that are in the best interests shareholders.”
Dorsey, who also co-founded the company, previously served as CEO, but was removed in 2008 and replaced by another of his co-founders. He returned to lead the company in 2015.
Musk tweeted Saturday that with Dorsey’s departure from the board, “Twitter’s board collectively owns almost no stock! Objectively, their economic interests are simply not aligned with those of shareholders.”
Dorsey noted recently that he “ended up with very little of the company” because he took a lot of his shares when he was laid off in 2008. He said he also gave back 1% of the company to employees in 2015. Still, Dorsey remains the company’s largest insider shareholder after Musk’s 9.1% stake, with about 2.25% of the shares, according to FactSet. After that, Silver Lake, whose CEO Egon Durban is a Twitter board member, holds 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.
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