Twitter board salary will be $0 if bid succeeds: Musk
What's the story
In another episode of Elon Musk v/s Twitter, the multi-billionaire took a swipe at the board of Twitter. In response to a user's post criticizing the tech company's board, Musk tweeted that the salary of the board will be $0 if his takeover attempt succeeds. This new announcement comes in the background of the decision by the board to adopt a "poison pill."
Context
Why does this story matter?
The back and forth between Twitter and Elon Musk is not likely to see an end soon. With Musk pushing for his $54.20/share bid to be tabled before the shareholders and the board of directors opposing the same, the battle is slowly moving into ugly territory. Whether Musk frees Twitter or the company holds off against the billionaire is a story for later.
Details
'Pay cut will save Twitter $3 million per year'
The tension between Twitter and Musk reached new heights after the company thwarted the billionaire's attempt to become the majority shareholder. Musk has been sharing ideas to improve Twitter since he became one of the shareholders. His most recent idea is to cut the board of directors' salary to $0. According to him, the pay cut will save the firm approximately $3 million/year.
Story so far
Musk recently bought 9.2% passive stake in Twitter
Earlier this month, Elon Musk became part of Twitter with a 9.2% stake in the company. Disillusioned by the tech giant's policies, he tried to buy out the company for $43 billion. In response, the company adopted a shareholder's right plan or a "poison pill." It gives shareholders the right to purchase stocks at a discounted price, effectively diluting a hostile party's takeover attempt.
Stakeholders
Vanguard Group is currently the largest shareholder
Last week, Saudi Arabian billionaire Prince Alwaleed bin Talal, who owns a stake in Twitter through Kingdom Holding Company, denied Musk's offer by saying that the proposed offer is "not close to the intrinsic value of Twitter given its growth prospects." Vanguard Group has increased its stake in Twitter to 10.3%, making it the biggest shareholder in the company.