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Twitter Board reportedly not at jumping Musk’s offer to buy the company

Elon Musk has not given up on his attempt to take over Twitter. However, the Board apparently is not interested in Musk’s plans.

The drama involving the world’s richest man and one of the most popular social media networks is nowhere near its end. After declining a seat on the Board, despite owning the most shares for an individual, Musk has dropped an offer to buy up the company, taking it private.

In case anybody still wondered why Musk declined the board seat, one of Twitter’s rules prevents a seat holder from getting more than 15 percent of the company shares, which would have prevented Musk from owning the micro-blogging website completely.

Musk has offered to pay $43 billion for the whole company. However, according to reporting from The Information, the Board is not welcoming of the idea.

The Board is also said to be considering ways to stave off Musk’s attempt to take over the company. One of the proposed strategies is the poison pill, which will make it harder for Musk or any other person to buy the shares completely. One approach is to flood the market with shares when an investor buys up stock above a certain limit. This will make it easy for other investors to buy but harder for an individual investor to buy up.

The company even has some poison pill maneuver baked into its bylaws. For example, the Board can issue ‘blank check’ preferred stock without seeking approval first.

Meanwhile, Musk has used his favorite approach to get the maximum attention to his cause. He has set up a poll on whether the decision to take the company private should rest with the Board or shareholders. More than two million Twitter users have voted, with the majority agreeing the shareholders should decide.

However, the Board has not given a formal reply yet. It promises to address the offer in a meeting soon.

Musk has said he has a plan B should the Board turn down the offer. While he didn’t elaborate on what the plan involves, Musk revealed in his offer to the Board that he would reconsider his status as a shareholder if turned down.

He also explained during a TED interview that he is interested in Twitter not for the money but to preserve free speech. However, $43 billion in cash is not an easy amount of money to source, even for the world’s richest man. However, this would not be the first time he failed to take a publicly-traded company private. He promised to do so with Tesla, where he is the CEO, but that did not happen, despite mentioning he had secured the necessary funding. The debacle landed him in a tussle with the Securities Exchange Commission (SEC), with the oversight board placing restrictions on his use of Twitter.

Written by HackerVibes

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