Twitter Co-founder Jack Dorsey Steps Down from Board, Investors Vote against Musk Ally

UTC by Bhushan Akolkar · 2 min read
Twitter Co-founder Jack Dorsey Steps Down from Board, Investors Vote against Musk Ally
Photo: Depositphotos

Jack Dorsey’s stepping down comes as per their scheduled plan. On the other hand, Twitter investors have voted to oust Musk’s ally Egon Durban to keep him out of any further decision-making in the Twitter deal.

On Wednesday, May 25, Twitter co-founder finally stepped down from his position on the board of directors at Twitter Inc (NASDAQ: TWTR). This exit was scheduled as per the previous plan.

Last year in November 2021, Dorsey resigned as the Twitter CEO handing over the reigns to Parag Aggrawal. However, a lot of things have changed on Twitter over the last seven months. A month back and so, the world’s richest man Elon Musk made a $44 billion bid to acquire Twitter.

However, Musk has put his plans on hold citing concerns with too many fake accounts on the platform. Thus, the exit of Jack Dorsey comes at a very critical time when the Twitter fate hangs in balance.

Although there have been reports of Dorsey re-joining the Twitter board once again, he has categorically stated that he will never be rejoining as CEO again. Currently, Jack Dorsey is leading the financial payments firm Block Inc (earlier Square).

Twitter Investors Vote to Oust Musk Ally from the Board

Elon Musk’s bid to acquire Twitter has ruffled some feathers with many expressing their discontent over the acquisition. At the shareholders’ meeting on Wednesday, May 25, Twitter board members voted to oust Musk ally Egon Durban.

Durban leads as the CEO of private equity firm Silver Lake, and had previously partnered with Musk in his bid to take electric carmaker Tesla, private. This could also be the reason that the Twitter board might want him out of the helm of affairs. Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh told Reuters:

“The Twitter board has not embraced Elon Musk and his vision for Twitter. So the fact that his ally has been removed from the board is not surprising”.

Initially, the Twitter board had decided to adopt a poison pill in order to prevent Musk from raising his stake. Later, they decided to accept the buyout offer. But the recent vote against Durban indicates that shareholders are skeptical of Musk’s plans to take over Twitter considering his recent whimsical behavior.

No one actually knows what Musk’s plans are at this stage. “Mr. Musk, if you’re listening, we hope that you’ll join us in voting for this proposal,” said Ethan Peck, an associate at the National Center for Public Policy Research.

Business News, Market News, News, Social Media, Technology News
Bhushan Akolkar

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

WhaleMaker
Related Articles
WhaleMaker