Following Tesla and SpaceX CEO Elon Musk’s acquisition of Twitter and privatizing the company, some analysts are expecting co-founder Jack Dorsey to return to the CEO position. Dorsey after leaving the role for only five months.
Following his letter to the Twitter board and two weeks of negotiations, CEO of both Tesla and SpaceX Elon Musk has purchased the social media platform in a bid offer of $54.20 per share in cash, or the equivalent of $44 billion.
Now, Chinese analysts expect and claim that the co-founder of Twitter – Jack Dorsey – will return to the CEO role. The reasons for the restoration of his original role are basically:
• Musk is also in charge of Tesla and SpaceX
• Dorsey and Musk are close friends, they have a good relationship
Analysts are claiming that the good relationship between Dorsey and Musk are an essential factor for the former to return as CEO, as they both share the same ideas on how Twitter should work:
“Earlier this month, when Musk was invited to serve on Twitter’s board of directors (and finally refused), Dorsey said on Twitter that he hoped Musk would serve as a Twitter director for a long time. In 2019, Dorsey said of Musk, ‘I like him, what he is trying to do, and I want to help in any way.’
They also have a lot of the same ideas about Twitter’s products. Most strikingly, they believe that algorithms that support Twitter Feed should be more transparent and open source. In addition, both of them are aware of Twitter’s control over users’ speech.”
Additionally, Musk has stated that he “doesn’t have confidence in the management,” meaning that he does not see current CEO Parag Agrawal as a good fit for managing the company.
Agrawal became CEO of Twitter following Dorsey’s resignation last November, focusing on his second company Block – a financial and digital payment services company –, as well as investing in Bitcoin. Agrawal invited Musk to the Twitter board two weeks ago. However, the Tesla CEO rejected the offer, teasing his larger deal he is planning to make.
The analysts are noting that in the Musk-Twitter deal, Dorsey’s name was frequently mentioned, with people familiar with the company knowing that they cannot ignore him.
Finally, the analysts are noting that with all that being said, Dorsey could potentially not return at all and that Musk could not invite him back. However, the analysts are saying “When Musk proposed to buy Twitter two weeks ago, few people believed that he would succeed. The same is true for CEO candidates. Nothing is impossible.”
Our take: We believe that it is unlikely Jack Dorsey will be joining back Twitter as CEO, but anything is possible. We don’t have much information yet on if Elon Musk will become CEO or he will find a new one for the company.