Last week, Elon Musk made an offer to buy Twitter for $43 billion in cash. To block that move, the board of directors has issued a new “shareholder rights plan”. And for the first time, Twitter co-founder and former CEO Jack Dorsey has opened up on Musk’s offer.
In 2021, Dorsey stepped down as Twitter CEO, giving his responsibilities to Parag Agrawal. On Twitter, he responded to a user, referring to the board as “consistently the dysfunction of the company”. Dorsey will stay as a board member with his 2.2 percent share till next month.
Venture capitalist Gary Tan agreed with Dorsey that a badly run board “can literally make a billion dollars in value disappear”. The former CEO even made it clear that he won’t allow speaking about that issue in public.
- Twitter Says Elon Musk Will Not Join Its Board
- Twitter Adopts ‘Poison Pill’ Plan to Stop Elon Musk’s Takeover Bid
Musk said, “with Jack departing, the Twitter board collectively owns almost no shares!” He added, “Objectively, their economic interests are simply not aligned with shareholders.”
According to the Securities and Exchange Commission 13G filing, Musk now owns 73,486,938 shares of Twitter. That represents a 9.2% passive stake in the company. By this, he is now the largest outside shareholder in the social media stock. About his offer, Musk said, “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”. He also said that Twitter has “extraordinary potential”, which he will be glad to unlock.