Twitter CEO Jack Dorsey addresses students during a City Hall at the Indian Institute of Technology (IIT) in New Delhi, India, November 12, 2018.
Anushri Fadnavis Reuters
Former Twitter CEO Jack Dorsey has criticized the company’s board in a series of tweets on Sunday, as the group now has the task of evaluating the takeover bid by billionaire Elon Musk.
In response to another Twitter user describing the “conspiracies and coups” that took place at the beginning of the story on the Twitter board, Dorsey replied: “This is a constant dysfunction of the company.”
Earlier, he responded to another tweet on the same topic. It quotes venture capitalist Fred Destin, quoting what he called the “Silicon Valley proverb”: “Good boards don’t make good companies, but a bad board will kill a company every time.”
Dorsey replied “big facts.”
Dorsey is still on Twitter, but plans to leave after his term expires at a shareholders’ meeting in 2022, which is scheduled for the end of May.
The board is currently considering a $ 43 billion proposal by Tesla CEO Musk to buy the company and make it private. It is also reported to arouse additional interest. On Friday, the Twitter board adopted the so-called poison pill – a shareholder rights plan with a limited duration, which will allow shareholders to buy shares at a discount if a person or legal entity accumulates at least 15% of outstanding ordinary shares without prior approval on board. Musk recently revealed more than a 9% stake in the company ahead of his takeover bid.
The board said the plan would not prevent it from making a deal in the best interests of the company and its shareholders, but would “reduce the likelihood that any entity, person or group would gain control of Twitter by accumulating the open market without paying all shareholders an appropriate control premium or without providing sufficient time for the Board to make informed judgments and take actions that are in the best interests of shareholders. “
Dorsey, who is also a co-founder of the company, previously served as its CEO, but was fired in 2008 and replaced by another of its co-founders. He returned to lead the company in 2015.
Musk tweeted Saturday that with Dorsey leaving the board, “Twitter’s board collectively owns almost no shares! Objectively, their economic interests are simply not in line with shareholders.”
Dorsey recently noted that he “eventually got a very small share of the company” as he took away many of his shares when he was fired in 2008. He also said he returned 1% of the company back to employees in 2015 However, Dorsey remains the largest domestic shareholder in the company after a 9.1% stake in Musk, with about 2.25% stake, according to FactSet. Silver Lake, whose CEO Egon Durban is a member of Twitter’s board, then held 0.26%, according to FactSet. The Vanguard Group is the largest institutional shareholder with a 10.29% stake in the company, according to FactSet.
Twitter did not respond immediately to a request for comment.
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