Anyone that is following the billionaire Elon Musk knows that he has several contacts that he keeps close. One of them is Jack Dorsey, the former CEO and founder of Twitter.
Jack Dorsey is far past Twitter and has other huge plans for his future, one of which is the development of a brand new and much different social media. However, even after all this time, he held some percentage of Twitter shares.
Jack Dorsey announced that he doesn’t want to cash his shares out of Twitter and he simply rolled them over to Elon Musk’s new holding company for Twitter, X Holdings I Inc. This lowered the amount that Elon Musk needed to pay to make the acquisition.
How Jack Dorsey Saved Elon Musk $1 Billion In His Twitter Acquisition?
Jack Dorsey had about 2.4% of Twitter’s shares in his ownership. In other words, when we translate this to money, the sum comes up to something just over $1 billion. This is $1 billion that Musk didn’t have to come up with to buy the company.
Jack Dorsey and Elon Musk’s relationship is not secret. They are friends and the world knows about it. The text message exchanges revealed in the court filings before Musk decided to proceed with the deal show that in full. They had exchanged numerous texts even before Elon Musk announced his plans for the takeover. As a result, there were rumors that Jack Dorsey would invest in Musk’s takeover company.
Even though there were rumors about it, this needed to come to light and be confirmed by Jack Dorsey himself. According to documents that were signed, Jack Dorsey agreed to roll over his shares into the new company in April. As soon as Elon Musk signed the merger agreement, Jack Dorsey agreed on investing his shares in the new company. However, this formally happened on Thursday, the same day when Elon Musk officially acquired the company.
Now that Elon Musk has Twitter, the world is awaiting the announced major changes on the platform. And according to reports, the revival of the platform’s glory has started. Reports claim that Elon Musk has engineers working 24/7 to implement his requests. One of Musk’s ideas is to make the verification process on the platform a revenue-generating part of Twitter.
This would mean that if celebrities want a verified account on Twitter, they will need to pay some amount to the platform. Another point where Elon Musk wants changes is the implementation of Vine, the short video platform within Twitter.
In the meantime, Elon Musk announced a massive layoff of employees in the company. He already started and fired the three top executives and his intentions are to lower the number of employees by up to 75%. What do you think? Would Twitter be better under Elon Musk’s leadership?