8 ms·

This is a little weird. Jack Dorsey is not a majority owner of Twitter and so he can't do whatever the heck he wants. Most companies would ask the board for ap

by Dwolb 11y ago

This is a little weird. Jack Dorsey is not a majority owner of Twitter and so he can't do whatever the heck he wants. Most companies would ask the board for approval to issue more shares for its employees - this did not happen. So then the question is, 'why does Jack feel compelled to donate his shares more than any other Twitter shareholder?' One reason could be Jack is a philanthropist and believes in giving back to people who may have contributed to his success. Another could be Jack expects a return in investment. But how much? Twitter market cap is ~19B. He is giving 1% of Twitter to employees which is 190M. He owns 3% therefore he was worth 570M. To make his money back, Twitter must rise from 19B to 25B. Can 190M invested in its current developers achieve this? Probably not. Jack is most likely trying to save Twitter. The third option is Twitter is in big trouble and only Jack can see it. This could be a last ditch effort to make short term investments to save the company by investing in the people that matter most. It's a bold move that could pan out in their favor.

azima 11y ago
i think it's more that he already has way more money than he needs. And needs to inspire confidence with employees and show his commitment to creating a better Twitter. to him it doesn't mean much financially, but he's probably hoping it shows that he's committed.
grinich 11y ago
> effort to make short term investments to save the company by investing in the people that matter most those seem like long-term investments to me
- Dwolb 11y ago
  I think it's debatable. Is a one time bonus to employees long term or short term? Since it's equity and not cash it probably depends on the structure of the deal. It's only one tactic in the company's overall strategy for long term viability. My hunch is the move is closer to an emergency maneuver to address immediate issues.
hkmurakami 11y ago
I had the same line of thought as you. I wonder how large his RSU grant will be as CEO. That would counteract some of this.
prawn 11y ago
Doubt he's the only one who can see it. It's written up in many stories and most people using Twitter can see how much of a graveyard it can become at times. (It's the social network I use most, so I'd rather that weren't the case.) This could be purely a move about PR and legacy. In recent times we've seen Yahoo and then Microsoft make expensive moves in an attempt to gain relevance. I'm not sure it'd be the rank and file employees who hold Twitter back, but anyone steering it?
- wingerlang 11y ago
  > .. how much of a graveyard it can become at times Could you expand on this? I don't use Twitter enough to know the subtleties of it.
  - ponyous 11y ago
    For me it feels like graveyard when I search for a hashtag that interest me and all I see are promotions and links to other pages. I want to see actual discussions among people like me so I can participate. Note: I don't truly understand how to use Twitter...
    - rational_indian 11y ago
      >Note: I don't truly understand how to use Twitter... Does anyone?
  - prawn 11y ago
    Can feel like it goes hours with barely anyone seeding it with content, outside a select few people. You can tweet something you feel is really interesting and get no feeling that anyone has seen or appreciated it (my two main accounts have about 800-2000 followers). There are some active topics, but a lot of friends have abandoned it for Instagram. I don't use Facebook so I don't see how active that is by comparison. My wife works in social media specifically and would go days without a tweet now. I take that as one sign.
onion2k 11y ago
One thing that's worth adding - Twitter as a corporation might be in trouble, but Twitter as a product is not. If the corporation fails then the product would be bought by Facebook/Google/Apple/etc and carry on for a very long time yet. Twitter might be hard (impossible?) to successfully monetize to the point where it's actually profitable, but as a platform it still has a huge amount of value that lots of people would like to own. Platforms with millions of users never fail quickly.
- afro88 11y ago
  > Platforms with millions of users never fail quickly. Yes they do. When a better product arrives that gains enough traction, users migrate very quickly. Myspace, Altavista, Aol etc.
  - mattmanser 11y ago
    ICQ is a better example of how quickly people abandon communications platforms. Everyone used to use ICQ.
    - k__ 11y ago
      Well, people used MySpace a long time. It even got relaunched a few times. So it din't die quick.
  - onion2k 11y ago
    Not really. Only AltaVista is dead. MySpace: Still going at https://myspace.com/ https://myspace.com/ Altavista: https://en.wikipedia.org/wiki/AltaVista https://en.wikipedia.org/wiki/AltaVista - shut down in 2013, 10 years after it was sold to Yahoo!. AOL: Very much still alive at http://www.aol.com http://www.aol.com, owns sites like Huffington Post. And in response to mattmanser, ICQ: Still going at https://icq.com/ https://icq.com/ They may not be the behemoths of the tech industry any more but they are definitely not dead. And the only one that is dead took a decade before it was shut down. Sites with millions of users never die quickly.
Tinyyy 11y ago
I don’t think your math is correct. If he gave away 1% to Twitter employees, then he has 2% left, or 380MM. In order for these stocks to be worth 570MM, their price has to increase by 50%, which means that their market cap increases from 19B to 29B.
- Dwolb 11y ago
  Yessir you are correct. Thanks :)

by Dwolb 11y ago

azima 11y ago

i think it's more that he already has way more money than he needs. And needs to inspire confidence with employees and show his commitment to creating a better Twitter. to him it doesn't mean much financially, but he's probably hoping it shows that he's committed.

grinich 11y ago

> effort to make short term investments to save the company by investing in the people that matter most those seem like long-term investments to me

Dwolb 11y ago
I think it's debatable. Is a one time bonus to employees long term or short term? Since it's equity and not cash it probably depends on the structure of the deal. It's only one tactic in the company's overall strategy for long term viability. My hunch is the move is closer to an emergency maneuver to address immediate issues.

hkmurakami 11y ago

I had the same line of thought as you. I wonder how large his RSU grant will be as CEO. That would counteract some of this.

prawn 11y ago

Doubt he's the only one who can see it. It's written up in many stories and most people using Twitter can see how much of a graveyard it can become at times. (It's the social network I use most, so I'd rather that weren't the case.) This could be purely a move about PR and legacy. In recent times we've seen Yahoo and then Microsoft make expensive moves in an attempt to gain relevance. I'm not sure it'd be the rank and file employees who hold Twitter back, but anyone steering it?

wingerlang 11y ago
> .. how much of a graveyard it can become at times Could you expand on this? I don't use Twitter enough to know the subtleties of it.
- ponyous 11y ago
  For me it feels like graveyard when I search for a hashtag that interest me and all I see are promotions and links to other pages. I want to see actual discussions among people like me so I can participate. Note: I don't truly understand how to use Twitter...
  - rational_indian 11y ago
    >Note: I don't truly understand how to use Twitter... Does anyone?
- prawn 11y ago
  Can feel like it goes hours with barely anyone seeding it with content, outside a select few people. You can tweet something you feel is really interesting and get no feeling that anyone has seen or appreciated it (my two main accounts have about 800-2000 followers). There are some active topics, but a lot of friends have abandoned it for Instagram. I don't use Facebook so I don't see how active that is by comparison. My wife works in social media specifically and would go days without a tweet now. I take that as one sign.

onion2k 11y ago

One thing that's worth adding - Twitter as a corporation might be in trouble, but Twitter as a product is not. If the corporation fails then the product would be bought by Facebook/Google/Apple/etc and carry on for a very long time yet. Twitter might be hard (impossible?) to successfully monetize to the point where it's actually profitable, but as a platform it still has a huge amount of value that lots of people would like to own. Platforms with millions of users never fail quickly.

afro88 11y ago
> Platforms with millions of users never fail quickly. Yes they do. When a better product arrives that gains enough traction, users migrate very quickly. Myspace, Altavista, Aol etc.
- mattmanser 11y ago
  ICQ is a better example of how quickly people abandon communications platforms. Everyone used to use ICQ.
  - k__ 11y ago
    Well, people used MySpace a long time. It even got relaunched a few times. So it din't die quick.
- onion2k 11y ago
  Not really. Only AltaVista is dead. MySpace: Still going at https://myspace.com/ https://myspace.com/ Altavista: https://en.wikipedia.org/wiki/AltaVista https://en.wikipedia.org/wiki/AltaVista - shut down in 2013, 10 years after it was sold to Yahoo!. AOL: Very much still alive at http://www.aol.com http://www.aol.com, owns sites like Huffington Post. And in response to mattmanser, ICQ: Still going at https://icq.com/ https://icq.com/ They may not be the behemoths of the tech industry any more but they are definitely not dead. And the only one that is dead took a decade before it was shut down. Sites with millions of users never die quickly.

Tinyyy 11y ago

I don’t think your math is correct. If he gave away 1% to Twitter employees, then he has 2% left, or 380MM. In order for these stocks to be worth 570MM, their price has to increase by 50%, which means that their market cap increases from 19B to 29B.

Dwolb 11y ago
Yessir you are correct. Thanks :)