As their bromance heats up, Jack Dorsey has weighed in again to support Elon Musk’s pending acquisition of Twitter following news that the Tesla boss wants Dorsey to keep an ownership stake and stick to it.
Twitter’s co-founder and former CEO is still on Twitter’s board, but has attacked it as dysfunctional and had planned to attend the annual meeting at the end of May when his term ends.
Dorsey today responded to tweets from Ben Horowitz, co-founder and general partner of the investment company Andreessen Horowitz. The company agreed to invest $ 400 million in an Elon Musk-owned Twitter, one of 18 blue-chip supporters the Tesla boss lined up to help fund his bid, according to an SEC file.
Horowitz said: “Twitter has a great promise as a public square, it suffers from a myriad of difficult problems, ranging from robots to abuse to censorship. Being a public company that relies solely on an advertising business model exacerbates all of these.”[ads1]; Then he added, “Elon is the only person we know and perhaps the only person in the world who has the courage, brilliance and skills to fix all of these and build the public square that we all hoped for and deserve.”
“This is true. It needs coverage for a while,” Dorsey said.
Musk intends to take the company privately to put his stamp on the platform which he said should be freer, with less moderation of content. Last week, Dorsey Musk called “the unique solution I trust” to run Twitter. “I trust his mission to expand the light of consciousness.” He then said, “Taking it back from Wall Street is the right first step.”
Twitter documented the exchange in another SEC file on Thursday.
Musk has offered to buy out existing shareholders for $ 54.20 per share in a deal worth around $ 44 billion. He unveiled the new financial commitments of over $ 7 billion from a group of investors that include Larry Ellison, Fidelity, Sequoia Capital and the cryptocurrency exchange Binance.
The submission stated that Musk has discussions with some shareholders, Dorsey in particular, about the possibility of retaining “a share investment in Twitter after the completion of the merger instead of receiving merger consideration in the merger”.
A major investor, Prince Alwaleed Bin Talal, who originally called Musk’s offer too low, will contribute 34.9 million shares (over 5% of the company) to the deal.
Separately, CNBC reported today that Musk is expected to serve as interim CEO of Twitter for a few months after the agreement is completed. Dorsey had been CEO until the end of November 2021 when he resigned for the current CEO, Parag Agrawal.
Shares on Twitter were among the few winners in a stock market carnage today, up 2.65%. (Tesla went down more than 8%).