Elon Musk's Final Warning To The Twitter Board!

 Tesla billionaire has just sent a final warning to the Twitter board. What is Elon Musk's warning and what impact will it have on the Twitter board? Join us today in this blog, as we explore Elon Musk's final warning to the Twitter board, all was well at the beginning between the Twitter board and the Tesla CEO, the Tesla founder was even appointed to the board as revealed by Twitter CEO, Pirog Agra wall via a tweet that.

I'm excited to share that we're appointing Elon Musk to our board, through conversations with Elon in recent weeks, it became clear to us that he would bring great value to our board. It was easy to suspect that all was not well between the tech, billionaire and the board. When Musk rejected a seat on the board on the same day, his appointment was supposed to be.

Just like before CEO Pirog agro wall was tasked with informing the public of Musk's decision of rejecting a seat on the board. He relayed the information to the public, through a tweet that reads Ilan has decided not to join our board. I sent a brief note to the company sharing with you all here, but it all became clear that there was bad blood between Ilan and the Twitter board.

After the board adopted a poison pill that is meant to stop the tech genius from taking Twitter. The tech icon retaliated and said that it is the shareholders that have the final say and not the board members, the Tesla founder, even threatened that he will take the bid to the shareholders directly.

Should the board reject his offer? Musk still made it clear that the board's economic interests and those of the shareholders are not alone. Uh, board is an elected body that has given delegated authority by the shareholders, which makes it absolutely necessary for them to act in the best interests of those they represent, who are the shareholders when the board makes decisions that are contrary to the wishes of the shareholders, it is said to have failed in its fiduciary.

Elon Musk's first warning is that the board will face a big liability. Should they abandon their fiduciary function? He revealed this in a tweet that reads, if the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty. The liability they would thereby assume would be Titanic in scale board members as stewards of public trust must always act for the good of the organization rather than for the benefit of themselves.

If the Twitter board members fail in their fiduciary role, they are likely to be voted out by the shareholders. Moreover, the shareholders also have a right of suing the Twitter board in a court of law. This in the end may force the Twitter board of directors to pay the shareholders and amount equivalent to the damages that they faced, which will also include the fees of the attorney.

But it is Elan's final warning to the Twitter board that will blow your mind. The Tesla founder has promised disaster for the board. As soon as he takes office. This final warning was unexpected and it has come as a surprise to the. The tech billionaires final warning to the board is that he will eliminate their salaries and financial compensations.

As soon as he takes the company. Private key revealed this via a tweet that reads the board salary will be $0 if my bid succeeds. So that's $3 million a year saved right there. Twitter board members take home between 250,000 and 300,000 per year. The amount is relatively big considering that the work of the board members is more of a part-time.

Most of the day-to-day operations of the company are run by the CEO Pirog and his team. The board only plays a very insignificant role to the greater success of the company. This explains this strong opposition that the board is showing towards Elan's plans of buying 100% stake in Twitter. You will be surprised to know that of all the 11 Twitter board members.

They have accumulative stock of 2.37 per. What is even more mind blowing is that 2.2, 5% of the stock belongs to Twitter. Co-founder Jack Dorsey, who also sits on the board. This simply means that the other 10 board members save for Jack have only a stake of 0.1, 2%. Musk is justified to say that the financial objectives of the board and those of the shareholders are not alone.

This is because the Twitter board members have very little to lose. Should the share price of the company fall as such the board members are only focused on safeguarding their salaries. The Twitter board is likely to heat Elan's final warning and start taking their fiduciary role. Seriously, in that regard, the board needs to sit and soberly.

Think of Musk's offer of taking the company private, as Ilan said, it is the best offer that will even attract the sheriff. On the 14th of April Musk made an offer of $54 and 20 cents per share, which is way higher than the current share price of $49 and 63 cents. In fact, before Musk bought a 9.2% stake in Twitter, the share price was below $40, seven days.

After making the first offer of taking the company, private Elan has made a more attractive offer at $58 and 60. This is a great offer that the Twitter board should consider accepting. So there is every possibility that the board will listen to Musk's warning and accept his offer. The Twitter board is likely to suffer serious consequences.

If it does not listen to Musk's warning and accept his offer, it is unfortunate that some of these consequences will spill over to the shareholders while attending Ted 2022 conference in Vancouver, the Tesla billionaire hinted that he has a plan B should the Twitter board ignored. Although he did not disclose many details about his alternative plan.

MUSC is likely to ditch the company. If his offer is rejected. One thing that you can be sure of is that when Musk leaves Twitter, the company's share price will fall way below $40. This will be a big loss to the shareholders who have an option of selling their shares to Musk at $58 and 60 cents per.

Elon Musk is so influential to an extent that a single tweet from him is enough to change the stock market prices. When Musk cashes out his stock in Twitter, he may decide and write one negative tweet about the microblogging platform, which will make it share price hit rock bottom. In case the Twitter board ignores Musk's warning, the tech billionaire is likely to approach the shareholders directly with an aim of buying their shit.

The tech billionaire has even hinted that the true owners of the company are the shareholders and not the Twitter board as a result. It is the shareholders who should have a final say when it comes to selling the shares of the company, it will be a big embarrassment to the board. Should the shareholders accept to sell the shares directly to the tech genius?

It is also expected that Twitter founder, Jack Dorsey will help Musk mobilize the Twitter shareholders, given his long experience in the. When push comes to shove, Musk is likely to launch his own social media platform, which will give Twitter a run for its money Elan's microblogging site will not just be like any other social media outlet as it will be run by arguably one of the most successful CEOs in the world today, Musk is a CEO of his multiple companies of space, X, Tesla Neurolink and the boring company.

Space X is definitely one of the most successful private space companies in the world that has even won contracts from NASA. And the Pentagon Tesla has also made a name in the auto industry where it is the first company to hit a market cap of 1 trillion. Neuralink on the other hand is working on the next big technology of developing chips that would be implemented in people's brains to simultaneously record and stimulate brain activity.

Musk's track record in his company speaks for itself, and you can be sure that the multitalented CEO will equally succeed in the social media industry. The board members will lose their jobs and be sued in a court of law. If they fail to listen to Musk's. What is more disturbing is that the board's ignorance may lead to the collapse of the American microblogging platform.