Twitter Stock Rises. Elon Musk Says Its Board Isn’t Aligned With Shareholders.
In a tweet over the weekend, the CEO of Tesla pointed out the Twitter board holds very few shares of the company and “objectively, their economic interests are simply not aligned with shareholders.”
Musk’s comments were in a response to a tweet listing names of those who serve on Twitter’s board, and came after the company took steps to ward off his $43 billion takeover attempt.
Twitter on Friday adopted a so-called poison pill by unanimously approving a limited duration shareholder rights plan. The plan reduces the likelihood of Musk or any entity gaining control of Twitter without providing the board sufficient time to make informed judgments.
Musk had disclosed his $43 billion offer on Thursday, only weeks after he disclosed a 9.2% stake in the social media platform, making him the biggest shareholder at the time. Musk rejected an invitation to join the company’s board.
Twitter’s co-founder Jack Dorsey tweeted Sunday that the board has “consistently been the dysfunction of the company”. Dorsey’s comments were in response to venture capitalist Garry Tan’s tweet that a “wrong partner on your board can literally make a billion dollars in value evaporate.”
Dorsey, who stepped down from his role as CEO late last year, is a member of the board himself but his term expires at the 2022 annual meeting of stockholders scheduled at the end of May.
Twitter stock rose by almost 3% to $46.29 on Monday. The stock is up over 7% year to date.