The financial war that is behind the Twitter takeover is more than what meets the eye. The Twitter board has rejected $43 billion that Musk has given in his bid of taking this social media platform, private, but Musk has retaliated and has promised to terminate the unjustified financial compensations that the board takes home.
Join us today in this blog, as we explore how Elon has financially destroyed the Twitter board. As finances take a center stage in the Twitter takeover, it is necessary to examine the stake that the Twitter board members have. The board has 11 members, some of the key members in the board, our chairman, Brett Taylor CEO, Pirog our girl and Twitter.
Co-founder Jack Dorsey. It is shocking that 10 of the 11 board members have a total stake of only point 12% in the American microblogging site. Jack Dorsey is way better off as he has a stake of 2.2, 5%. The Tesla billionaire echo of 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 shareholder.
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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% stake is capable of stopping an investor with 9.2% stake from taking a company private, but Musk has a solution that will financially cripple the Twitter. 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, 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. Five days later on the 14th of the same month, the world's richest man made an offer of taking Twitter, private at $54 and 20 cents per share, which amounts to 43.
Saudi Arabia is prince Allah. We'd been to LA, 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. The poison pill plan is a strategy that is adopted 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, Elan.
The new shares will dilute Ilan 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. The sitting on the board of any company is the part-time job that anyone would want.
It has less stress and has very handsome, compensates. 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 save 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 read. Let me point out something obvious. If Elon Musk's takes Twitter, private, the Twitter board members don't have jobs anymore, which pays them 250 K to 300 K 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 $0 if my bid succeeds.
So that's $3 million a year saved, right? This is a big win for the shareholders. MUSC has also made it clear that the Twitter board members do not have the interest of the shareholders at. The giant communication platform has been performing poorly until Musk's great entry into the company. Elan has also made it clear that the economic interest of the board do not align with those of the shareholders.
You have to trust Musk's accusations against the Twitter board of Jack Dorsey's comments about the board is anything to go by the Twitter co-founder who is also one of the board members accuses the board that he sits on for 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.
One Twitter user seems to understand the inside story in the giant social media platform expose the incompetency of the board in a tweet that reads, if look into the history of Twitter board, it's intriguing as I was a witness on its early. Mired in plots and coups, and particularly amongst the Twitters 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 be absolute truth. As there are few people who understand the giant social media site, more than.
Jack has been with Twitter from the start, when it was launched in 2006. And 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 sitting up my Twitter.
He sold the tweet for $2.9 million last year, and donated the money to a charity that is fighting coronavirus. And after. Crypto entrepreneur Siena as TAVI who purchased the tweet has now listed it for $48 million as a non fungible token Dorsey has equally served as CEO in Twitter before paving the way for Pirog Agora.
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 does not taking salaries as a board member, it does not make sense for any other board members to get. 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 2.2, 5% 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 doge coin, 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 will be a big win for the Twitter shareholders with Elan. You can only expect positive change. He says it and he delivers anyways. Guys, if you want to see more interesting videos, click the video right above.
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