This act of Twitter’s board has gone unnoticed by Musk. He tweeted in response to a user’s post, ‘If my bid is successful then the salary of the board will be zero. In this way, there will be a savings of 3 million dollars every year. Musk currently holds a 9.1 percent stake in Twitter and is the second largest shareholder in the social media company. Last week, Musk offered $43 billion to buy a 100% stake in Twitter.
Why is Musk behind Twitter?
Twitter’s board announced the implementation of the poison pill provision in a press conference on Friday. The poison pill is a mechanism to protect companies from forced takeovers. This provision will come into force if Musk or any other investor takes more than 15 per cent stake. Twitter said in a statement that the rights plan would reduce the chances of any company, individual or group taking over Twitter by buying shares from the open market. The CEOs of Tesla and SpaceX have offered to buy shares of Twitter at a price of $ 54.20 per share.
Musk revealed his purchase of a stake in Twitter on April 1. Since then, there has been a tremendous tussle between Twitter and Musk. Twitter had claimed that Musk would join its board. But Musk turned down the offer. Since then, the market was hot with such speculation that Musk might forcibly take over the company. Musk understands the power of Twitter and uses it extensively to make his point. He has 8.1 crore followers on this social media platform.
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Source: navbharattimes.indiatimes.com
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