Jack Dorsey has officially resigned from the board of Twitter, the company he personally founded, after being accused of helping Elon Musk organize his takeover.
Jason Goldman, a founding member of Twitter, said in an interview that Dorsey intentionally froze a deal that the Twitter board had been negotiating so that they would have to sell to Musk instead. Goldman to the interviewer, “That to me is just a clear backstabbing of the board by the founder when they had a deal in hand to come to a standstill.”
Goldman also criticized his former colleague Dorsey for Dorsey’s constant complaining about the Twitter board. At one point Dorsey called it the “greatest dysfunction” of the company.
According to an SEC filing by Twitter, Dorsey “shared his personal view that Twitter would be able to better focus on execution as a private company,” during a private meeting that Musk had requested.
In the end Musk’s offer to buy Twitter outright for $44 billion was approved by the board. Once the deal has been executed, Jack Dorsey walks away with an extra billion. Even if Elon were to pull out of the deal at this point, he would have to pay Twitter $1 Billion. The $44 Billion price is also significantly higher than the stock’s current value.
In recent weeks Elon Musk has suggested he is considering pulling out of the deal after announcing his belief that Twitter has been inflating their user numbers. Musk claimed the company has been undercounting bots by intentionally using small sample sizes for their surveys.
Musk also suggested he would be demanding a significant price reduction if Twitter was overcounting profiles. Conservative Commentator Ian Miles Cheong asked Musk, “If 25% of the users are bots then the Twitter acquisition deal should cost 25% less,” to which Musk replied: “Absolutely.”
While the Twitter board may be upset over Jack Dorsey’s alleged betrayal, it seems like that had failed to make the company successful for years. Do you think Dorsey made the right move by handing his company over to Elon Musk?