Parag Agarwal, CEO of Twitter, told employees that Elon Musk was considering buying the company at $43 billion to take it private. Agarwal told employees in a 25 minute Q&A that they were not being held hostage by Musk’s news and would decide if it was in the shareholders best interests.
A Reuters report claims that one employee asked about the process by which Musk was offered a seat on the board. The employee wondered, “Are you just going to invite any and all billionaires onto the board?” Agrawal replied that Musk’s proposal was being considered by the company’s board. Agrawal also stated that it was important for people to voice their opinions about the platform in order to improve it. Agarwal said, “I strongly believe that those who criticize our service should be heard so we can improve.”
Twitter board is not interested Musk’s proposal
Reports also suggest that Twitter’s board was not interested in Musk’s offer to buy out the company and it was looking at a “poison pill” strategy in order to stop future bids by Musk for large shares of the company.
I made an offer https://t.co/VvreuPMeLu
Elon Musk (@elonmusk), April 14, 2022
The ‘poison pills’ strategy is a way to flood the stock market with shares after an investor has acquired more than a certain amount. It makes it easier for investors to purchase it. Due to its high cost, it is difficult to get a single investor to purchase the company. It also helps companies to avoid hostile takeovers. This strategy has one drawback: the stock price is diluted which can make the company less attractive financially. Shareholders may have to buy new shares to maintain and keep their share of the company.
Is Elon Musk saying this?
Musk had criticised Twitter’s board before the meeting and said, “It wouldn’t be utterly imprudent not to submit this offer to a shareholders vote.” Musk was responding to a question regarding the potential impact of the board’s decision if the offer is rejected.
Musk has also asked his Twitter followers whether “taking Twitter private for $54.20 should not be up to shareholders and not the board”. Musk also shared with his followers a Goldman Sachs document that examines Twitter before an acquisition.
Topline. Tesla’s billionaire CEO Elon Musk, who submitted a $43 billion bid to buy Twitter on Thursday, said later in the day at a TED conference in Vancouver that he has “sufficient assets” to buy the social media company and already has a “Plan B” ready if the board decides to reject his offer.15 hours ago
“I can do it if possible,” Musk said at the conference when asked if he could actually afford to buy Twitter, adding that he has “sufficient assets” to carry out such a deal, amid doubts that he has enough liquidity given almost all his wealth is tied up in SpaceX and Tesla stock.15 hours ago
Mr. Musk said he would pay $54.20 a share in cash, representing what he said was a 54% premium over the day before he began investing in Twitter and a 38% premium over the day before his investment was publicly announced.11 hours ago
On Thursday, billionaire Tesla CEO Elon Musk announced he had made an offer to buy Twitter for $43 billion. Musk made his move not long after Twitter announced it had failed to reach an agreement with him about joining its board.11 hours ago
CEO says Elon Musk was considering buying Twitter, but that the board was not interested in his offer to take it private because he is not a shareholder