Dorsey slams Twitter's board of directors; Musk claims the board 'owns basically no shares!'

Former Twitter CEO Jack Dorsey blasted the company's board of directors in a series of tweets on Sunday, as the panel is now tasked with considering billionaire Elon Musk's acquisition proposal.

Dorsey responded to another Twitter user who described the "plots and coups" that occurred early in the history of Twitter's board of directors, "it's consistently been the company's dysfunction."

Earlier in the discussion, he responded to another tweet. It cited venture capitalist Fred Destin, who referenced a "Silicon Valley saying" as follows: "Good boards do not make good companies, but a terrible board will always kill a company."

"Big facts," Dorsey said.

Dorsey remains a member of Twitter's board of directors but intends to resign when his term expires at the company's 2022 annual meeting of shareholders, which is slated for late May.

Tesla CEO Musk's $43 billion offer to buy the firm and take it private is now being considered by the board. Additionally, it is apparently attracting additional attention. On Friday, Twitter's board of directors approved a so-called poison pill — a limited duration shareholder rights plan that allows shareholders to purchase stock at a discount if a single person or entity acquires at least 15% of outstanding common stock without the board's prior consent. Musk has disclosed that he owned more over 9% of the firm before to launching his takeover effort.

The board stated that the plan would not preclude it from pursuing a deal that is in the best interests of the company and its shareholders, but it would "reduce the likelihood that any entity, person, or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board with sufficient time to make informed judgments and take actions in the best interests of shareholders."

Dorsey, who also co-founded the firm, previously served as its CEO but was dismissed in 2008 and replaced by another co-founder. In 2015, he returned to run the company.

Musk tweeted on Saturday that, as a result of Dorsey's departure, "the Twitter board together owns basically nil shares!" Their economic interests, objectively, are just not linked with those of shareholders."

Dorsey has stated that he "finished up with very little of the company" after it acquired a large portion of his shares following his 2008 firing. He also stated that he returned 1% of the company to employees in 2015. Dorsey, however, is the company's largest insider shareholder, surpassing Musk's 9.1 percent ownership with almost 2.25 percent of shares, according to FactSet. Following that, according to FactSet, Silver Lake, whose CEO Egon Durban is a member of the Twitter board of directors, owns 0.26 percent. According to FactSet, the Vanguard Group is the company's top institutional stakeholder, with a 10.29 percent ownership.

A request for comment from Twitter was not immediately returned.


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