As reported on May 25, Twitter co-founder Jack Dorsey, who stepped down as CEO on November 29, is stepping down from the social media platform’s board with immediate effect.
WATCH: Elon Musk Wants To Slash $44 Billion Twitter Deal By 25%
Find out: Twitter is bleeding execution — is it a sign to dump your stock?
The move comes on the day of Twitter’s annual shareholder meeting and at a time when Elon Musk’s $44 billion acquisition of the platform is still uncertain.
However, the news is not unexpected. When it was announced in November of 2021 that Dorsey was stepping down and being replaced by Parag Agarwal, Twitter also said that Dorsey would “become a member of the board until his term ends at the 2022 meeting of stockholders”. Will stay”. Press release.
Bonus Offer: Earn up to $1,500 by opening a Citi Priority account with essential activities.
Twitter stock was up 3.1% in the afternoon of May 25.
Dorsey praised Musk’s acquisition of the platform in a Twitter thread in April, saying, “I trust in his mission to raise the light of consciousness.”
“Idea and service are what matter to me, and I will do whatever I can to protect both. Twitter has always been my only issue as a company and my biggest regret. It is owned by Wall Street. And the advertising model has it. Taking it back from Wall Street is the right first step.”
“Theoretically, I don’t believe anyone should own or run Twitter. It wants to be a public good at a protocol level, not a company. Solving the problem of being a company, however, Elon is the only one.” The solution is what I believe in. I trust in their mission to spread the light of consciousness.”
Dorsey, who is a friend of Musk, owns 2.4% of the platform’s shares, according to Twitter, a filing filed with the Securities and Exchange Commission (SEC) on May 25.
Peter Cohn, a senior lecturer at Babson College and author of “Goliath Strikes Back,” told GOBankingRates that “It also wouldn’t surprise me if Dorsey was advocating for renegotiated the deal price on behalf of Musk — who now Too rich for Musk’s blood.”
Bonus Offer: Find a checking account that fits your lifestyle. $100 bonus offer for new checking account customers.
“With Dorsey gone, Musk could walk away and pay a $1 billion breakup fee or he could sue Twitter to pull out of the merger agreement. In the meantime, I’m guessing Twitter The board will try to force Musk to pay $54.20 per Twitter share in cash to run on the merger contract,” he said.
Poll: Do you think people should invest in crypto?
Discover: From Doge to Dorsey – Reactions to Elon Musk Buying Twitter
The Washington Post reports that Twitter executives who spoke at the annual investor meeting declined to answer questions about the company’s Musk deal.
more from GOBankingRates
About the Author
Yale Bizzouti-Kennedy is a full-time financial journalist and has written for several publications including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. He also served as Vice President/Senior Content Writer for major NYC-based financial companies including New York Life and MSCI. Yaël is now freelance and most recently, he co-authored the book “Blockchain for Medical Research: Accelerating Trust in Healthcare” with Dr. Sean Manian. (CRC Press, April 2020) He holds two master’s degrees, one in Journalism from New York University and one in Russian Studies from the University Toulouse-Jean Jaurs, France.