Twitter’s co-founder and CEO, Jack Dorsey, said Tuesday that he had provided $ 1 billion of his personal fortune to coronavirus help through his philanthropic fund.
43-year-old Dorsey announced in a series of tweets that he would transfer his equity in his Square digital payments group to his Start Small limited liability company and contribute approximately 28 percent of his total assets.
Dorsey’s first promise went to an initiative co-founded by actor Leonardo DiCaprio.
The move could be the largest of a single person to alleviate coronaviruses and is associated with the pandemic around the world that is inflicting a great deal of life and economic devastation on the United States.
Coronavirus deaths in the U.S. rose to over 1
Jack Dorsey, CEO of Twitter, donates more than a quarter of his fortune to COVID-19 relief efforts. This could be the largest single person for coronavirus help
The Twitter CEO said in a thread on Tuesday that he will donate approximately 28 percent of his assets to efforts during the global pandemic and will now make his donations public
‘Why now? The needs are becoming more and more pressing and I want to see the effects in my life, ”said Dorsey.
“I hope that inspires others to do something similar. Life is too short, so let’s do everything we can to help people now. ‘
Dorsey said that after the pandemic ended, the fund would focus on health and education for girls and efforts to create a “universal basic income”.
Dorsey, CEO of Twitter and Square, has established a foundation and Start Small LLC.
The model is similar to what Facebook founder Mark Zuckerberg set out in his Chan Zuckerberg initiative, and allows flexibility in funding startups and efforts that a foundation may not be able to fund.
Twitter’s co-founder, Dorsey, announced his actions on the social media platform on Tuesday
Dorsey said the fund would focus on girls’ health and education once the global coronavirus pandemic was over, highlighting them as “the world’s existential problems.”
Dorsey announced that all information about its donations will be released in the future
‘Why is #startsmall an LLC? This segments and dedicates my shares to these causes and offers flexibility, ”said Dorsey.
A document link tweeted by Dorsey showed that the new fund had already pledged $ 100,000 for a new initiative called America’s Food Fund, which was launched by Laurene Powell Jobs, Steve Jobs’ widow, and actor Leonardo DiCaprio.
Forbes estimates Dorsey’s net worth at about $ 3.3 billion, including his stake in Twitter and Square.
He said he chose to use his payment group equity because “I have a lot more square.”
Dorsey also said that he would speed up the sale of the pledged shares over time.
“The impact of this money is likely to benefit both companies in the long run, as it helps the people we want to serve,” he said.
Dorsey is said to donate the money primarily from his shares in Square and not from Twitter
The co-founder of Twitter also published a document in which his donations can be tracked. He revealed that his first $ 100,000 had contributed to an initiative co-founded by Laurene Powell Jobs, Steve Jobs’ widow, and actor Leonardo DiCaprio
Dorsey, who has kept details of his charitable efforts secret for years, said that all donations to and from the fund are now visible to the public at all times through a public document.
Other technology entrepreneurs have pledged aid to varying degrees.
Amazon founder Jeff Bezos has pledged $ 100 million for food aid during the pandemic, and Zuckerberg has committed more than $ 25 million to research by the Bill & Melinda Gates Foundation.
The Gates Foundation has pledged $ 125 million in research last month, but is believed to invest more in a variety of projects.
The United States has registered more than 398,000 coronavirus cases, with the total death toll rising to more than 12,800.
Twitter Inc pulled its first-quarter sales outlook and forecasted an operating loss in late March as the corona virus outbreak impacted ad sales. However, the pandemic has increased the number of active users on the microblogging platform.
The outbreak has made social media services like Twitter important to a wider population than usual as people try to keep up with the latest news from the authorities and stay in virtual contact with friends.
However, because of the uncertainty associated with viruses, many advertisers have used marketing budgets to cut costs, and others are reluctant to advertise alongside corona virus discussions because they fear they may be connecting their brands to the sensitive issue.
“The impact of COVID-19 started in Asia and has had a greater impact on Twitter advertising revenue worldwide than in a global pandemic in recent weeks,” said CFO Ned Segal in a statement.
Twitter was the first major ad-supported US platform to reveal the effects of the corona virus.
The Twitter warning came two weeks after an agreement was reached with Elliott Management that Jack Dorsey should remain as chief executive and add three new directors.
Elliott and his billionaire founder, billionaire Paul Singer, bought a $ 1 billion stake in Twitter on February 28 and launched a Dorsey removal campaign after the CEO announced last autumn that he would move to Africa in mid-2020.
Singer’s concern about Dorsey included his split attention between his roles on Twitter and Square, the payment company he co-founded.
Investors also raised concerns about how Dorsey would run both companies if he moved to Africa for six months.
Elliott, who owns approximately four percent of Twitter’s shares, planned to appoint four people to its eight-member board when three of the company’s directors were up for election at the upcoming general meeting, sources told Reuters last month.
Twitter signed an investment agreement with Silver Lake and Elliott Management in March, which Jack Dorsey (pictured) will retain after a repressing effort as CEO of the social media company
Singer, a Republican mega donor, planned to use his $ 1 billion stake in Twitter to push for many changes, starting with the top by removing Dorsey and nominating four board members
The new deal with Silver Lake appears to have eliminated the danger of Dorsey being removed. Changes in his role are not explicitly mentioned.
As part of the agreement, Twitter had pledged to increase daily users by 20 percent or more in 2020 and beyond, which is approximately the same as user growth in the fourth quarter.
According to Twitter, the total number of daily active users that can be monetized (mDAU) has increased by 23 percent to 164 million since the beginning of the year, which is due to the conversation about COVID-19 and ongoing product improvements.
“We are seeing a significant increase in Twitter users,” said Dorsey.
The company expects sales in the first quarter to decrease slightly year on year. Revenue was previously estimated at $ 825 to $ 885 million, an increase of 8.6 percent over the previous year in the middle.
The company is expected to announce its results on April 30.