Jumping Block - mytrbroadcast.com

As I sit here this morning all the news rage is how Jack Dorsey’s bloodbath of some 4000 employees at Block™ (reports say it’s half the work force) is supposedly some “genius” CEO move embracing AI in a first mover advantage. Maybe, but I’m not of that camp. Here’s what I think is far more plausible.

Let me start with a question: When in any of Mr. Dorsey’s ventures and tenure as a CEO has the term “efficient use of people” ever been attributed to any reports regarding Twitter™ or Block™ or anything else?

It’s OK, I’ll wait.

For those that may not remember. When Twitter was purchased by Musk what was the first thing he (Musk) did and commented on? Hint: the absolute bloat of people, processes and management. It was so much so that he gutted some 80% (I might be off a bit but it was a lot) of the staff when he took it over to the howls of the media and more.

Whether you agree with what he did and has done since is immaterial. The issue I want to focus on here is that when he opened his mouth (Musk) and said he would buy it, something funny happened that usually doesn’t happen to productive enterprises. It’s called “SOLD!” Not only that, but when Musk appeared to openly rethink what he did (aka, balk) Twitter demanded he pay or they would sue. He subsequently followed through and the rest is now history.

(Note: I commented on all of this back in the day, and it’s all in the archives.)

Which brings us to today. You know what is not fun for a guy who seems to be allergic to anything a true CEO would want to do? Hint: run the damn thing.

He’s a typical start-up founder type guy, i.e., he creates the idea, brings it to life, moves on. This is all my conjecture, of course, but if you’re any sort of businessperson yourself, with any true acumen – it’s beyond obvious.

When Twitter was sold (as I opined back then, he was brought back as CEO of Twitter because no one seemed to be wanting to take the job and was the only name Wall Street could sell investors why they needed to not sell.) He had left Twitter had moved on to Block as CEO then and became CEO of both companies which was absolutely absurd. Again, I wrote about all this in real time back then.

At that time something else was part of his world: crypto. Not just a part, but a big part. So much so it has had all the appearances that’s all he’s really been interested in for years.

And what has been happening of late? Hint: losing value, losing faith and losing the fun it once had telling never ending stories as to how it will make everyone rich – tomorrow. Today, it’s more likely if you bought it over the last few years – you’re losing money, not getting rich.

When Dorsey left Twitter, Block was on a rocket-ship ride straight up topping ~$290 a share. Since then? Here’s another hint (lot of hints, I know) Prices that have been at ~75 to 80% discount for years (yesterday’s close was ~$55.

So, suddenly, out of the blue Mr. Dorsey announces a mass firing and it’s all because AI will now be the model and take Block back to its glory days. Right? Again, maybe, but here’s how I’m viewing it.

If there’s anything “genius” from the former boy wonder to be construed in this revelation I believe it’s this…

It’s a great PR move to advertise the company’s “For Sale” and at attractive levels of employees (aka firings). Especially since something else appeared to happen almost simultaneously: PayPal™ is either shopping itself or, someone is out there actively shopping and just passed on them. Then, suddenly, within hours, it appears Block has done the equivalent of hanging out the sign “No ~~Reasonable~~ Offers Refused.”

As always, we shall see.

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