Twitter CEO Parag Agarwal told employees the board was still evaluating an offer to buy Elon Musk’s company for $43 billion and take it private. In a 25-minute Q&A session with employees on Thursday, Agarwal said the board was not “hosted” by news of Musk’s plans to buy the company and would make a decision “in the best interest of our shareholders”. ,
According to a Reuters report, an employee asked how the company reached the decision to give Musk a board seat. “Are we going to start inviting any and all billionaires on board?” the employee asked. Aggarwal responded by saying that the company’s board is still evaluating Musk’s proposal. He also said that those who were critical of the platform were critical of making it better. “I have a strong view that the voice of those who criticize our service is something we should emphasize so that we can learn and get better,” Agarwal said.
Twitter’s board not interested in Musk’s proposal
Separately, reports suggest that Twitter’s board was not interested in Musk’s buyout offer and was using a ‘poison pill’ strategy to thwart future attempts by the billionaire to acquire a larger stake in the company. Was considering using.
For the unversed, the ‘poison pill’ strategy involves flooding the market with stocks after an investor receives a stock above a particular threshold. This makes it easier for other investors to buy it. It also makes it difficult for a single investor to buy because of the cost. This in turn helps a company prevent hostile takeovers. However, a disadvantage of this strategy is that the stock price becomes diluted, making the company look unattractive financially. Sometimes, shareholders have to buy new shares to try and maintain their stake in the company.
What is Elon Musk saying
Before the meeting, Musk criticized Twitter’s board, saying, “It would be completely unforgivable not to put this proposal to a shareholder vote. They are the owners of the company, not the board of directors.” He was responding to a question about the potential impact of the board’s decision if it chose to decline the proposals.
Meanwhile, Musk is also asking his followers whether “taking Twitter private at $54.20 should be up to the shareholders, not the board.” He has also shared a document by Goldman Sachs that reviews Twitter before the acquisition.
Elon Musk Wants to Buy Twitter Post: Twitter CEO Says This First appeared on BGR India.