April 19, 2022

Musk: Twitter Board Not Aligned With Shareholders

  • Flyover Country

By: Konrad Holden

In Brief: 
In a tweet on Saturday, tech billionaire Elon Musk tweeted out against Twitter’s board of directors saying that their economic interests are not aligned with shareholders’. Musk is currently trying to buy the social media platform and take it private while the board is doing its best to stop his attempt. Multiple board members have spoken out against Musk who has offered $54.20 per share of the company’s remaining stock, which would cost him and other investors around $39 million to purchase the company in full.

The Background: 
The Musk-Twitter saga continues. 

Musk shocked the market when it was revealed that he owns the largest portion of Twitter stock in early April. Musk is now attempting to buy out the entire company and take it private. Even after being outdone by the Vanguard Group on ownership, Musk is continuing to push for a buyout while Twitter’s board is trying to stop him.

On Saturday, Musk struck out against the Twitter board tweeting that their “economic interests" are "simply not aligned with shareholders." Musk made the point that after former Twitter CEO Jack Dorsey left the board, the members collectively own “almost no shares”.

Musk was responding to a Twitter user who pointed out that the board members only own 77 shares together as a group excluding Dorsey.

Musk has been outspoken against the company’s anti-free speech policies and has called for major changes. He has even used the platform to poll users on whether or not they think the platform supports free speech while he was the largest owner. The poll results indicated that users are not pleased with the company’s performance.

Notable Quotes: 

"Elon Musk is in for a bad time. I'm not sure he's prepared to take on a couple PhDs, a few MBAs, and a Baroness who use Twitter once a year (to reset their passwords) and collectively own 77 shares of the company." - @ChrisJBakke

"Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders." - Elon Musk
 

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