Jack Dorsey is not only the co-founder but also the longest serving CEO of Twitter however he is now ganging up with Tesla billionaire Elon Musk to fight their common enemy the Twitter board but why is Jack fighting a board where he is a member how come Musk and Dorsey get along so well and how will their fight with the board end join me today in this article as we explore Elon’s and Jack’s partnership in Twitter that changes everything for the board. Musk and Dorsey greatly appreciate each other, and they do not shy away from showing it off. The 2 billionaires are not just friends, you can call them buddies. They have so many things in common hence their close relations. The two men have come to the defence of each other on several occasions when they were attacked. Before we look at how they gained up to destroy the Twitter board, let us have a look at a few things that bring them together. One thing that is common between Elon and Jack is that both men love crypto.
Most of their discussions and posts on Twitter are about digital currencies. The two men are not just crypto evangelist on the social media platform, but they are serious investors in the leading digital currency Bitcoin on the part of Musk his auto company Tesla has 432, 000 Bitcoins valued at $1. 71 billion dollars Jack also has invested 8, 027 Bitcoins valued at $317. 3 million dollars through his Fintech company called Block and was formally known as Square Musk loved Bitcoin so much that he even at one point allowed ten the products to be bought via Bitcoin. Later on he cancelled the move since Bitcoin is mined using fossil fuels which goes against Elon’s belief of production and consumption of sustainable energy. However, the Tesla founder has promised to start using Bitcoin as soon as sustainable energy is used in mining the digital currency. On his part, Jack maintains that digital currencies will soon replace the dollar.
This is so true given that the US President Joe Biden signed an executive order in early March that requires the government to the risks and benefits of creating a central bank digital dollar. The idea of digital currencies is not just being embraced in the US but in very many countries around the world. Where their respective central banks have started working on their own digital currencies. One thing that you will admire in both Elon and Jack is their love for tech and innovation. The two tech gurus can be credited for starting tech companies that have revolutionized the world in their own ways. Musk is the founder of X dot com that merged with to form the online money transfer platform that is popularly known as PayPal. Musk is also the founder of EV manufacturer Tesla that has made a name in the auto industry. It is the first car maker to reach a market cap of one trillion dollars. Elon is also the founder of SpaceX that has made significant contributions to the advancement of space and rocket technology. Jack Dorsey is also a tech genius in his own right together with three other partners Jack successfully started Twitter. Which now a giant social media platform that connects very many people around the world. Jack is also the founder of Block which is an American financial services and digital payments company based in San Francisco, California. Elon and Jack’s friendship has been tried in the past and found to be true. They have always been there for each other.
The Tesla CEO came to the defence of his Twitter counterpart back in 2016 when Jack’s role of CEO was at the verge of being taken away from him. Elliot management which had a acquired around 5% stake in Twitter was pushing for Jack’s Auster as Twitter CEO cited his lack of commitment given that he was also the CEO of his other company known as Block. In such trying moments for Jack, his friend Elon showed him public support via a tweet that reads, just want to say that I support Jack as Twitter CEO. He has a good heart. Six years after Musk supported Jack, it is now Jack’s time to support his friend Elon. And make no mistake about this, Dorsey has ganged up with Musk against the Twitter board. The Tesla billionaire started having issues with the Twitter board when it started frustrating his plan of taking Twitter private. On the 14th of April, the Tesla CEO made an offer of buying 100% stake in Twitter at 54 million dollars and 20 cents per share. Which amounts to $43 billion dollars. The day after Musk made his offer, the Twitter board called an impromptu meeting where they adopted a poison pill plan against the tech billionaire. The plan is meant to Elon’s plan of taking Twitter private. Elon Musk has bid back at the board citing that they are failing in their role of protecting the shareholders as seen in a tweet that reads, if the current Twitter board takes actions contrary to shareholder interest, they would be breaching their fiduciary duty. The liability they would thereby assume would be Titanic in scale. The Tesla founder also believes that the economic interest of the board and those of the shareholders are not aligned. This is so true given their level of investments in the global communication site. Save for Jack Dorsey all the other ten board members have a combined investment stake of. 12% in Twitter.
This is very small compared to Jack Dorsey’s stake of 2. 25% or Elon stake of 9. 2% in the micro blogging platform. It is even shocking that one board member does not have even one single share in the company. Musk threw jabs at the board when he replied to a tweet that had listed the individual stake of each Twitter board member. Elon’s response read, wow. With Jack departing, the Twitter board collectively owns almost no shares. Objectively, their economic interest is simply not aligned with shareholders. The Tesla billionaire has also promised to eliminate the salary of the board as soon as his Twitter takeover succeeds. The tech icon believes that the salaries and hefty allowances that are paid to the board are unjustified. The tech icon shared his plan of doing away with their pay in a tweet that reads, board salary will be zero dollars if my bid succeeds so that’s three million dollars a year saved right there. If there is a person that has stood with Elon as he fights the Twitter board, it’s Jack Dorsey. The former Twitter CEO and currently a board member of the social media platform could not hide his excitement when Musk was appointed to the Twitter board. At least Jack was now happy as he was getting a friend who could help him push through several agendas on the board. Dorsey welcomed Musk’s appointment to the via a tweet that reads, I’m happy Elon is joining the Twitter board.
He cares deeply about our world and Twitter’s role in it. Parag and Elon both lead with their hearts and they will be an incredible team. There is no doubt that Jack Dorsey is not a happy man on Twitter. He resigned as CEO late last year to pave the way for Parag Agarwal who was serving as Twitter’s chief technical officer. Before being appointed to the top office. There is also much that can be read from Jack’s decision of leaving the Twitter board in May, but Jack is not leaving a company that he founded. Just like that, he is using every opportunity to fight back at the board which he considers dysfunctional. The good thing is that he is not fighting alone. He has the backup of the richest man on the planet who is determined to do everything possible to save Twitter from the hands of the board. After Musk’s offer of $43 billion dollars was rejected, he has increased the offer by 3. 5 billion dollars making the new amount to be $46. 5 billion dollars. If that amount is not accepted, Musk may add more given that he has great wealth in his companies of Tesla and SpaceX. Musk and Dorsey still have the option of taking the vote decision to the shareholders being that they have a significant stake in the company.
Elon is sure that the Twitter shareholders will accept his share offer of $54 million dollars and 20 cents per share which he considers to be the best price. But if Push comes to shove Musk and Jack what it takes to come up with a social media platform that will be superior to Twitter. Remember, it is Jack who founded Twitter some 16 years ago. With the experience he has gained over the years plus Elon’s genius, they can come up with a great social media site. Elon’s new partnership with Jack Dorsey will not just change everything for Twitter but the entire social media industry. When two billionaires and geniuses come together, you can expect great things to happen. Elon and Jack are doing it in the social media industry. They are the perfect duo in the tech world. There is no doubt that success will be their portion and a big success.
