Republican activist investors are attempting a shareholder revolt against Twitter’s CEO Jack Dorsey. A company called Elliott Management is attempting the takeover, because they think Wall Street will value Twitter more highly with Jack Dorsey out of the picture.
Elliott Management hasn’t done what activist investors typically do: which is threaten the company to change some of their company structure and policies before they attempt to take over. Instead, their going straight for Jack Dorsey.
Their reasoning is that Jack Dorsey is both CEO of Square and Twitter, and one or both of them would be valued higher, if Dorsey was CEO of only one or the other.
Now, I’m just a dope with a blog, I don’t know much about finance, but it’s hard to take all of this at face-value.
Ultimately, I don’t think Elliott Management is ideologically motivated, except for the cold-hard ideology of capitalism. By that I mean, I don’t think they’re the type of republicans who whine about conservatives being banned on twitter, their the type of republicans who want to squeeze as much value out of us as possible.
However, I do think part of the reason they’re going so hard for Dorsey is influenced by generalized republican ideology.
I’m sure they’ve heard conservatives complain about Jack Dorsey, and – insulated in the hyper-wealthy conservative political ecosystem – believe that he truly is keeping down stock value, partially because of that.
One other detail implicated in this story is Jack Dorsey is one of Silicon Valley’s most vocal bitcoin advocates, and crypto-types became very worried about the future value of bitcoin in light of this news.
However, Elon Musk has come out in support of Jack Dorsey.
As much as I make fun of both Dorsey and Musk, and don’t want them to have a fraction of the money they do… it’s honestly for the best.
Dorsey has made some poor choices with twitter. A lot of them. I’ve had a lot of followers banned for posting things from a left-wing perspective that are fairly innocuous, while a lot of virulent racists and fascists stay on the platform because they narrowly skirt any rules one may break.
At the same time, Dorsey doesn’t allow political ads on the platform, which is super refreshing. I highly doubt Elliott Management would make similar types of principled decisions, no matter how low of a bar those principles are.
So for that reason, I have to reluctantly give it up to Elon Musk, as much as it pains me.
Isn’t it terrible when two people you don’t like team up in a way that you makes you kind of support them? Society is complicated.