![]() Parts of Musk’s correspondence with company executives were made public in a securities filing today. Musk’s approach to making the offer was itself a strategic move. Musk is essentially saying, ‘I'll massively over-pay because this isn't about making money it's about free speech.’ He's probably the only person on earth who would be willing and able to do this,” says Sami McCabe, the founder and chief executive officer at Clarity, a New York-based public relations firm. “ valuation vastly inflated, even for a company of Twitter’s stature. Were Musk’s takeover bid to be accepted, it’s likely that the platform would see major changes in everything from its business model to its terms and conditions of use. The power of corporations to dictate policy is greatly enhanced if Twitter depends on advertising money to survive.”Īs it stands, it’s estimated that close to 90% of the company’s revenue is generated from advertising. “Everyone who signs up for Twitter Blue (ie pays $3/month) should get an authentication checkmark,” he wrote in one tweet. As recently as last weekend, prior to the announcement that he had turned down the offer for a seat on the company’s board, Musk fired off a string of since-deleted tweets musing about how he’d like to see the platform change. Musk has been a very outspoken critic of Twitter (while also being a prolific user of the tool, with some 80.5m followers) and has on various occasions derided the company’s content moderation policies. Earlier today, Twitter's chief executive officer Parag Agrawal met with employees and tried to quell their frustrations and concerns while keeping specifics of the board's decisionmaking process under wraps. However, as of this afternoon, Twitter's board is considering a so-called "poison pill" plan to derail Musk's takeover plans, according to reports by The New York Times. “They have a fiduciary responsibility to consider any and all legitimate offers that would benefit the shareholders - this would appear to fit that category." Roberts predicts that Musk’s new offer is likely “very troubling” for Twitter executives and board members. It was quickly apparent to him that this would not happen - hence the reversal of the… board seat ,” says Paul Roberts, founder and chief executive officer at adtech firm Kubient. " large purchase of Twitter stock was most likely intended to get him a seat inside the organization, in order to create change from within. Now, less than a week later, he’s forcing Twitter’s board of directors to consider a buyout. Though the entrepreneur initially accepted the offer, he backed out last Saturday, April 9, the morning the deal was meant to be made official. Following an April 4 regulatory filing that revealed Musk as the largest investor in Twitter - holding a 9.2% stake - the company offered Musk a seat on its board of directors, on the condition that he cap his ownership at 14.9%. The offer comes on the heels of a widely publicized back-and-forth between the Tesla chief exec and the social network.
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