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Twitter Board’s Salary Will Be $0 If My Bid Succeeds: Elon Musk

Twitter Board’s Salary Will Be $0 If My Bid Succeeds: Elon Musk

Last week, Musk made an offer to buy the microblogging site worth $41.39 billion. He currently holds a 9.2 per cent stake in the company.

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Tesla CEO Elon Musk (File photo) AP

Days after making an offer to buy the microblogging site Twitter, Tesla and SpaceX CEO on Monday said that if his bid to acquire the company gets successful, the board of directors will receive no salary.

He was responding to Gary Black, “Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there,” Musk said. 

His comment comes a day after the social media platform adopted the “poison pill” defense to thwart Musk from taking over the company. The ‘poison pill’ is a financial device used by companies against hostile investors.

Last week, the world’s richest man made an offer to buy the microblogging site worth $41.39 billion. He has offered $54.20 per share, at a 38 per cent premium to the closing price of Twitter’s stock on April 1, the last trading day before Musk bought the majority stake in the company. Later the SpaceX CEO said that he is not sure if he will be able to acquire the company. 

Musk currently holds a 9.2 per cent stake in the company. He is the second-largest shareholder after Pennysylvania-based Vanguard Holdings, which has a 10.3 per cent stake in the company. 

Musk's current stake in Twitter is considered a passive investment, which means Musk is a long-term investor that's looking to minimize his buying and selling of the shares. 

Notably, Musk’s offer to acquire Twitter has been rejected by some shareholders, while others believe that the buyout price offered by the billionaire is very less. 

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