Twitter co-founder and former CEO Jack Dorsey has dropped the hammer on the company’s board of directors, revealing that its members have “consistently been the dysfunction of the company.”
Dorsey, who has a seat on the board and remains one of the largest shareholders, made the comments on Twitter as he seemed to side with Tesla CEO Elon Musk in his battle to buy the company and take it private.
The comments came after Twitter’s board adopted a “poison pill” to try and stop Musk’s takeover bid after rejecting his offer.
Commenting on the situation, Venture capitalist Garry Tan posted on Twitter, “The wrong partner on your board can literally make a billion dollars in value evaporate.
“It is not the sole reason behind every startup failure, but it is the true story a surprising percentage of the time.”
Another Twitter user agreed and said: “Good boards don’t create good companies, but a bad board will kill a company every time.”
Dorsey said: “Big facts.”
A Twitter user added a comment that said:
“If look into the history of the Twitter board, it’s intriguing as I was a witness on its early beginnings, mired in plots and coups, and particularly amongst Twitter’s founding members.”
To which Dorsey replied:
“It’s consistently been the dysfunction of the company.”
it’s consistently been the dysfunction of the company
— jack⚡️ (@jack) April 17, 2022
“Are you allowed to say this?” another user posted.
“No,” Dorsey replied ominously.
— jack⚡️ (@jack) April 17, 2022
Sources close to Musk say “this is not over” after Twitter’s board rejected his offer.
As Slay News previously reported, Musk has now engaged his “Plan B” and is talking to other investors to join his bid.
The Twitter board unanimously approved the “poison pill” move on Friday “following an unsolicited, non-binding proposal to acquire Twitter,” the company said in a statement.
Twitter issued a statement that said:
“Twitter, Inc. (NYSE: TWTR) today announced that its Board of Directors has unanimously adopted a limited duration shareholder rights plan (the “Rights Plan”). The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter.
“The Rights Plan is intended to enable all shareholders to realize the full value of their investment in Twitter.
“The Rights Plan will 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 sufficient time to make informed judgments and take actions that are in the best interests of shareholders.
“The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders.
“The Rights Plan is similar to other plans adopted by publicly held companies in comparable circumstances.
“Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board.
“In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.
“The Rights Plan will expire on April 14, 2023.”