Jack Dorsey kept his Twitter stock after Elon Musk purchased the company last Friday, according to Monday’s SEC filings. This move saved the new owner $1 billion dollars. Why didn’t Jack Dorsey sell his stock, take the cash, and run? It could be because of the friendship he has with Elon Musk.
Jack Dorsey Kept His Twitter Stock Because He Believes In Elon Musk’s Objective For The Company
The main reason Jack Dorsey kept his Twitter stock (about 18 million shares) in the private company because he believes in Elon Musk’s objective for the company. He tweeted this on April 25th this year:
So one can assume that Jack Dorsey wants to stick around to help Elon Musk turn Twitter around. Thus, he didn’t sell his shares. However, this move doesn’t give the former co-founder of Twitter any power in making decisions in the private company. Elon Musk still has total control even though he is taking guidance from his inner circle.
Reviewing Jack Dorsey’s tweets further, one could assume that he’s sticking around because he wants Elon Musk to succeed where he failed. The former co-founder didn’t like he had to work on goals to support the shareholders of the then-public Twitter. Those goals clashed with his own and caused a disconnect. So we could see him granting his blessing to Elon Musk buying the company as a second chance. Not for himself, though, as Jack Dorsey is working on a Twitter competitor called Bluesky.
So Why Didn’t Jack Dorsey Take Twitter Private?
That’s a good question. Michael Dell, the founder of Dell Technologies, took Dell private in 2013 with the help of several investors, the biggest being Silver Lake Partners and Microsoft. He did that to make various changes he felt the company needed to become successful again. Michael Dell said he couldn’t make those changes while the company was public. Once those changes were finished, he made Dell public again in 2018.
Maybe Jack Dorsey didn’t want to take the company private to fix it. He is the CEO of Square and is working hard in the Bitcoin community. Thus, is time is limited. Money could’ve been an issue. Buying out all the shares takes a tremendous amount and requires the owner to take out several loans, along with getting large investments. Whatever the case the former co-founder didn’t take this route.