The announcement that he will be stepping down from his position on the company’s board of directors comes at a difficult time for the company, which is in the process of being fully acquired by Elon Musk.
Twitter has lost its last founder. jack dorseyTogether with who created the famous social network Evan Williams You biz stone 16 years ago, he announced during the last shareholders meeting that he would immediately step down from his position on the company’s board of directors.
It’s an accidental outcome but somewhat expected after the social network’s president stepped down last November. Although Dorsey was a man loved by employees and Twitter users—the original idea for the service was his—his management of the company was not approved by some, including active investors. Paul Singer,
However, the announcement comes at a complicated time for the company, which is in the process of an all-out acquisition. Elon Musk,
aimed at Musk, who has strongly criticized some decisions made by the service in recent years, such as the permanent expulsion of the former US president, Donald TrumpTwitter has to be an unlisted company again, revamp it from within, and then bring it back to market.
Musk’s operation had the blessing of Dorsey, who has gone so far as to say that Musk is the only person with the profile the social network needs to transform itself and grow its potential. Although the current President, Parag Arwalihas introduced many changes and opened new avenues of monetization, the network is becoming less in both users and revenue compared to other social phenomena such as Facebook, instagram or even more recent products, such as TIC Toc,
At this week’s shareholders meeting, Musk’s shadow is clearly felt, which is troubling for managers. The purchase agreement was not up for vote at this time but officials were forced to decline several questions regarding it.
Musk himself, who currently holds a 9.2% stake in the company, was also not present at the meeting and there has been speculation for weeks that he may abandon the buyout effort or, at least, renegotiate the terms of the deal. Huh.
The initial offer accepted by both parties considered buying Twitter at the cost of $54.20 per share, Musk sold a portion of his shares in Tesla and borrowed the rest as collateral to raise the money needed, but the recent slump in the markets has complicated things. Twitter’s stock is currently trading at $36.94, which is 30 percent less than the fixed price. Tesla shares have also fallen significantly, putting Musk in a bad position.
Under the initial agreement, if either side backs out, they must compensate the other with $1 billion in compensation. They assure from Twitter that they will try to conclude the agreement as it is drafted, but tensions with Musk are clear and growing.
It doesn’t help, too, that there are many dismayed voices among Twitter employees about how the board has negotiated the deal and with Musk’s defiant and abrasive attitude. Musk believes the social network shows a clear bias towards left-wing politics and that it regularly censors right-wing voices. Just a few days ago, Musk also admitted that his own political orientations have changed and that although he has voted for Democratic (American Left) candidates in the past, in the future he will do so for Republican candidates. towards the spectrum.
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