Twitter in Turmoil: Elon Musk and his efforts to buy Twitter has been a hot topic, what lessons are there to take away?
What did more than 2.8 million people have to say about this problem? Here’s a summary with all the info you need, and solutions that Civex is working on
April 4th: An SEC filing confirmed that Elon Musk is the largest shareholder of $TWTR. Musk owns roughly 9% of the company, totaling about $3 billion dollars!
April 5th: Twitter CEO Parag Agrawal offered a board seat to Musk, which Musk rejected on April 9th. Had he agreed, his ownership of Twitter would be capped at 14.9%.
Musk was likely dissatisfied with the board seat conditions, because he publicly responded by offering to buy twitter for $43 billion, over $7 billion (19%) higher than Twitter’s current market cap. Musk also suggested he would take the company private upon purchasing.
As of right now, Twitter’s board has indicated they will not accept the offer. The board enacted a plan that would issue stock at a discount to dilute Musk’s influence if his ownership exceeded 15%.
The story ends there for now, but that last part might be the most interesting. What does such a plan mean for shareholder rights and corporate governance? Musk’s recent Twitter poll on the situation certainly captures a powerful sentiment.
Regardless of how you feel about his plans to purchase Twitter, the public’s opinion seems to concur that it should be everyday shareholders, not a select few on a board, involved in the decision.
What do these shareholders want for Twitter? How can we go about finding out?
Unfortunately, the tools that corporations use to engage with shareholders haven’t changed much since the 1930s.
This is where Civex comes in!
We are modernizing the #corpgov process. You should have the option to easily gather the information you need, engage with your community, and tell the company your thoughts directly, clearly, and quickly.
Meet. Discuss. Make an Impact.
You can stay up to date by signing up at http://22.214.171.124.
We are soon launching our closed beta, and releasing what we’ve been working on to the world later this year.
Our mission is to make sure #corpgov is easy for everyone, and shareholder voices are heard.
Update: As of April 25th, 2022, the board has accepted Musk’s $43 billion dollar bid to purchase Twitter. Musk tweeted “I hope that even my worst critics remain on Twitter, because that is what free speech means” upon the news going public.