In the event of an acquisition: Musk wants to reduce the salary of Twitter’s board of directors

Status: 04/19/2022 08:25 am

The fight to take over the short message service Twitter continues. Tesla boss Elon Musk, who is encountering resistance on Twitter with plans to acquire him, announced that he wants to cut Twitter’s board of directors’ salaries to zero.

The discussion between Twitter and Elon Musk about taking over the company is entering the next round. Musk has announced that he will reduce executive salaries to zero if his offer is successful.

Ironically, Musk reached out to the company’s board of directors via Twitter over the weekend that he wants to take over for around $43 billion. “(Twitter’s) Executive Salary will be $0 if my offer is successful,” Musk tweeted Monday. “So that’s $3 million a year that we’re saving here.” Musk responded with the tweet to a post by another user who had criticized the Twitter forum.

Poison pill to make acquisition difficult

However, Parag Agrawal, the company’s CEO, is not listed in the salary table discussed in the tweet. Twitter founder and former boss Jack Dorsey has not received any regular pay in the past year. Dorsey is one of the company’s largest shareholders with around two percent of the shares.

Musk already owns about nine percent of Twitter and wants to take over the company entirely. Twitter’s board is not enthusiastic about this and has reacted with the so-called “poison pill”. On Friday, Twitter announced the launch of a frequently used procedure that is intended to make it harder for large investors to increase their stake: The countermeasure states that other shareholders can buy additional shares cheaply if a buyer exceeds the 15 percent mark.

More bidders for Twitter in the offing?

Also, apparently another bidder could enter the race for dominance on Twitter. According to a report by the Reuters news agency, citing a whistleblower, technology-focused investment firm Thoma Bravo has informed Twitter that it is also considering a bid for the company. However, it is not clear how high it could be and if it will reach, the source said, according to Reuters. Thoma Bravo declined to comment on this.

According to a press report, the US financial investor Apollo may also want to participate in the acquisition of the short message service Twitter. The company is considering backing tech billionaire Elon Musk or another bidder with equity or loans in a bid, according to the Wall Street Journal (“WSJ”). The financial investor has also played through a possible cooperation between its Internet service Yahoo and Twitter. Apollo had acquired Yahoo from the US telecommunications group Verizon.

The stock market doubts the acquisition by Musk

On the stock market, Elon Musk’s takeover of Twitter is still viewed with skepticism. Yesterday, shares of Twitter rose 3.5 percent to $46.68 in US trading. That is well below the $54.20 Musk is offering per share.

Musk himself admitted doubts. “I’m not sure I can buy it,” he said last Thursday. However, the 50-year-old stressed that he “technically” had the funds to pull off the more than $40 billion (€37 billion) deal.

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