April 18 (April 18) Tesla CEO Elon Musk said publicly on Saturday that his personal social media Twitter efforts to prevent the company from being acquired by himself, indicating that the interests of board members are “completely at odds with shareholders”. .
Musk tweeted Saturday that the “economic interests” of Twitter’s board were “fundamentally inconsistent” with shareholders. His tweet came as Twitter tried to block its $43 billion bid to buy the company. Earlier, Musk publicly announced that he held 9.2% of Twitter’s shares and eventually decided not to join the company’s board of directors.
“Wow, the Twitter board has barely any shares since Jack left! Objectively speaking, their financial interests are not at all aligned with shareholders,” Musk tweeted. The “Jack” in his tweet was referring to Twitter co-founder Jack Dorsey, who stepped down as CEO in November.
Musk made the tweet in response to a user. The Twitter user revealed that members of Twitter’s board of directors currently collectively hold relatively small shares of the company.
“Elon Musk is in a bad situation,” the user tweeted. “I’m not sure he can accept a board of Ph.Ds, MBAs, and a Baroness. Only used Twitter once, just to reset the password. All together there are only 77 shares of the company.”
Musk recently successively bought 9.2% of Twitter’s shares, with 73 million shares, becoming Twitter’s largest individual shareholder. Twitter then announced that Musk would be joining the board, but denied the news within days.
Soon after, Musk offered to buy Twitter outright for $54.20 per share, valuing the company at about $43 billion.
Since then, Twitter’s board has taken what’s known as a “poison pill,” a shareholder rights plan typically used to avoid a hostile takeover. Twitter’s board plans to dilute Musk’s stake by increasing the number of shares on the market, which means he needs to spend more to acquire Twitter.
Daniel Ives, managing director of Wedbush Securities, said: “Twitter’s board plans to increase the number of shares or give existing shareholders a share price discount, a defensive measure that would drive up the company’s takeover price and open the door to potential acquirers. It’s harder to initiate acquisitions.”
Musk is currently the richest person in the world, according to reports, with a net worth of around $251 billion.
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event tracking
- 2022-04-18 Twitter’s board of directors holds a total of 77 shares, Musk bombarded: inconsistent with shareholders’ interests
- 2022-04-16Musk sentenced to false privatization tweet, or to pay shareholders billions of dollars
- 2022-04-16 Twitter launches ‘poison pill plan’ to block Musk takeover
- 2022-04-14 Musk proposes to buy Twitter at a valuation of $43.4 billion
- 2022-04-12 Musk sued for delayed disclosure of Twitter holdings
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