Jack Dorsey, former CEO of Twitter Inc, did not stand for re-election to the board in a meeting on May 25, Bloomberg reported, formally ending his connection to the micro-blogging site he co-founded in 2006.
The move comes as no surprise as he had hinted at this while handing CEO reins on November 2021 to Parag Aggarwal.
Besides his stint as CEO from 2015 to 2021, Dorsey has also been a company director since 2007.
Notably, this is the first time since foundation that none of Twitter’s co-founders are working with the company or are on its board, Bloomberg added.
Investor’s vote
During the annual meeting, investors voted against re-electing private equity (PE) firm Silver Lake’s Egon Durban to the board, Reuters reported on May 26. Durban is a known Musk ally.
Patrick Pichette was re-elected to the board and investors also voted in favour of creating reports on electoral spending and risks of using concealment clauses.
Besides this, management advice to vote against other proposals including commissioning a report on the company’s lobbying expenditures was heeded.
Shares tank, Musk promises to seek loans
In other developments, Musk informed the United States Securities and Exchange Commission that he would seek $13 billion in loans for his Twitter takeover, instead of the nearly $26 billion debt first indicated.
AFP reported that Musk has been “courting major Twitter investors including Dorsey in the hope of getting them to partner with him”.
Analysts remain concerned that the Tesla chief would use the EV maker’s shares to back his billion dollar loans and tie the company to Twitter, affecting its market fortunes, AFP noted.
Twitter's share price slumped to $54.20 per share after Musk on May 13 said the deal was on hold. It was near $40 per share till market close on May 25 indicating “a lack of faith by investors in the original deal being culminated,” AFP added.
(With inputs from AFP, Bloomberg and Reuters)
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