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Musk takes a look at Twitter Board, says “Board salary will be $0 if my bid is successful.”


Shortly after Twitter adopted a “poison pill” to protect itself from Elon Musk’s takeover bid, the Tesla CEO hit his board with a tweet. He said the salary of board members will be $0 if his candidacy is successful.

“Board salary will be $0 if my bid is successful, so that’s ~$3M/yr saved there,” Musk said in response to another Twitter user.

A “poison pill” is a strategy used by companies when the company floods the market with stock or gives existing shareholders the right to buy stock at a discount to dilute the bidder’s stake and return the purchase. of all the shares of the company much more expensive. . The shareholder who triggers the poison pill will not be able to make these discounted stock purchases. The Twitter poison will stay in place for a year.

Musk had recently purchased a 9.1% stake in Twitter before making an unsolicited $43 billion bid to buy the company and take it private. Musk is Twitter’s second largest shareholder, behind Vanguard Group, which only recently increased its stake to 10.2%.

Musk said the takeover bid was not for economic or commercial gain, but was intended to ensure freedom of expression on the platform. A self-proclaimed “free speech absolutist”, Musk wants Twitter to be a beacon of free speech despite being a private social media platform.

Musk criticized the board’s decision on his bid, even asking his 80 million Twitter followers if “taking Twitter private at $54.20 should be up to the shareholders, not the board.”

However, Musk is also aware that his plan to buy Twitter may not go as planned. Therefore, he has a plan B ready.

“I’m not sure I can acquire it,” the billionaire said Thursday at a TED event in Vancouver.

Twitter founder and former CEO Jack Dorsey also criticized Twitter’s board, saying the board has “consistently been the dysfunction of the business.” He said “big facts” in response to another Twitter user sharing a quote from a Fred Destin investor who said a bad board could “kill” a company.

(Edited by : Sudarsanan Mani)


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William

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