Twitter’s Board Has Just Been Destroyed By Elon Musk!

Twitter’s Board Has Just Been Destroyed By Elon Musk!
Twitter’s Board Has Just Been Destroyed By Elon Musk!

The financial war that is behind the Twitter takeover, is more than what meets the eye the twitter board has rejected the $ 43 Billion Dollars that Musk has given in his bid of taking the social media platform private. But musk has retaliated and has promised to terminate the unjustified financial compensations that the board takes home. It is necessary to examine the stake that the Twitter board members have. The board has 11 members some of the key members on the board are Chairman Brett Taylor, CEO  Parag  Aggarwal, and  Twitter Co-Founder Jack Dorsey it is shocking that 10 of the 11 board members have a total stake of only 0.12 %  in the American Microblogging site. Jack Dorsey is way better off as he has a stake of  2.25 %  the Tesla Billionaire echoed the same sentiments in a tweet” that reads wow with Jack departing the Twitter Board collectively owns almost no shares objectively their economic interests are simply not aligned with the shareholders”.

 As such the cumulative stake of all  Board Members is 2.37 %, it is difficult to understand how a board that has only 2.3 stakes is capable of stopping an investor with 9.2 stakes from taking a company private. But  Musk has a solution that will financially the Twitter board the issue of taking Twitter private. Started on the 4th of April, when the Tesla Billionaire bought a 9.2 stake in Twitter for $ 2.9 Billion Dollars making him the largest individual shareholder at the time. But very few people knew that this was the beginning of a soap opera. The events that followed are not only interesting but also entertaining it is just pure drama as many people anticipated Elon Musk was appointed to the Twitter board at first the tech icon accepted the offer before rejecting it.

On the morning of the 9th of April when his appointment to the board was going to become effective 5 days later on the 14th of the same month, the world's richest man made an offer of taking Twitter private at $ 54 Dollars and 20 cents per share which amounts to$ 43 Billion Dollars. Saudi Arabia's Prince Alwaleed Bin Talal who is the chairman of the Kingdom holding company that has a 5.2 stake was the first to reject Musk's offer later on the board adopted the poison bill plan that seeks to discourage the world's richest man from the Twitter takeover.

So what exactly is the poison pill plan that Elon is not happy with and how does it work the poison pill plan, is the strategy that is adapted to prevent an investor from taking over a company in that regard the Twitter corporate board will have a right of increasing the number of shares in the giant communication platform all the other shareholders will have the right of buying the shares at a discount except the party, that seeks to take over the company. In this case Elon Musk the new shares will dilute Elon's stake of  9.2 %  the main aim of the poison pill mechanism is to lower the share price of the company. So that it becomes less attractive in most cases the investor that wants to take a private company will get frustrated, and dump the plan altogether sitting on the board of any company is the part-time job that anyone would want.

It has less stress and has very handsome compensation the qualification of getting on the board is just having a good reputation and investing. Some little money in the company from the Twitter case you can see that the investment of the board members is safe. For Jack Dorsey is a big joke in fact there is a member on the Twitter board who does not have even a single share in the company, it is a wonder how such a member is trusted with the risk of making decisions on behalf of the shareholders. It is only board members who have the luxury of being paid hefty compensations for attending very brief meetings one Twitter user poked holes into the board when he said that they risk losing their jobs should the Tesla CEO take the company private his tweet reads” let me point out something obvious if Elon Musk takes Twitter private the Twitter board members don't have jobs anymore which pays them 250k  to 300k per year for what is a nice part-time job that could explain a lot”.

Shortly after the Tesla Billionaire replied to the tweet and confirmed that the goose of the board is already cooked in a tweet that says” Board salary will be zero dollars if my bid succeeds so that's $ 3 Million Dollars a year saved right there”. This is a big win for the shareholder Musk has also made it clear that the Twitter Board members do not have the interest of the shareholders at heart, the giant communication platform has been performing poorly until Musk's great entry into the company. Elon has also made it clear that the economic interests of the board do not align with those of the shareholders you have to trust Musk's accusations against the Twitter board.

 If Jack Dorsey's comments about the board are anything to go by the Twitter Co-Founder who is also one of the board members accuses the board, that he sits on of being incompetent. Jack has also had not such a good experience with the board as revealed in his tweet that reads when I was fired in 2008 and made share the board took most of my shares away from me, I also gave 1 % of the company back to the employee pool in 2015 so ended up with very little of the company. It is no surprise that Jack concurred with some rather unfortunate comments that were made about the Twitter board.

One Twitter user seems to understand the inside story in the giant social media platform exposed. The incompetency of the board in a Tweet that reads if look into the history of the Twitter board it's intriguing as I was a witness on its early beginnings mired in plots and cousin particularly. Amongst Twitter's founding members I wish if it could be made into a Hollywood thriller one day in a quick response Jack concurred with the claims of the Twitter user when he replied back saying it's consistently been the dysfunction of the company Jack Dorsey's words on Twitter can be taken to the absolute truth.

As there are few people who understand the giant social media site more than him Jack has been with Twitter from the start when it was launched in 2006. He is one of the Co-Founders in fact he is the one who made the very first tweet on the platform on the 21st of March 2006. The company was launched in July of the same year Dorsey has so far sold the first Tweet that reads just setting up my Twitter he sold the tweet for $ 2.9 Million Dollar last year and donated the money to a charity that is fighting CoronaVirus in Africa. Crypto Entrepreneur Cena Estavi who purchased the tweet has now listed it for $ 48 Million Dollars as a Non-Fungible Token(NFT). Dorsey has equally served as CEO and Twitter before paving the way for the Perog Aguero's wall as earlier mentioned.

Jack Dorsey now sits on the board as a member it makes every sense for the Twitter board to be punished for their failures. Elon Musk has decided that he will punish them by eliminating their pay as soon as he takes Twitter private. The Tech Billionaire who sits on a number of boards in his many companies does not take a salary and if Elon is not taking salaries as a board member it does not make sense for any other board members to get paid.  It is expected that the Twitter board members will leave the company as soon as their pay is terminated the board members will have very little to do with the company. As they have an insignificant investment in the company Elon Musk may spare Jack Dorsey of the 11 board members since the former Twitter CEO has a significant stake of 2.25 in the social media site. Moreover, the two tech icons are also close friends and have many things in common such as their interest in Crypto by the way Elon Musk revealed that as soon as he takes Twitter private members will be allowed to pay via Dogecoin which he believes to be the Currency of the future.

The Twitter board members will not have any other option other than to resign after Elon Musk destroys them financially terminating their unjustified salaries. It will be a big win for the Twitter shareholders with Elon you can only expect positive change, he says it and he delivers.

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