World’s richest man Elon Musk offers to buy Twitter for $43 billion.
Earliar On April 5, Twitter appoints Elon Musk to its board of directors for two year term.
But in recent week, Elon Musk decided not to join Twitter Inc.’s board of directors.
With 9.2% stake, Elon Musk is the largest share holder of Twitter.
According to the analysts, a board members can't buy stake more than 15 per cent in the company.
After rejecting the board of directors , Billionaire Elon Musk has offered to buy Twitter for $54.20 per share in cash.
At the rate of $54.20 per share, Twitter's total valuation will reach around 42 billion dollars.
Twitter’s shares closed at $45.85 on April 13, meaning that Musk’s offer is at a premium of over 18%.
As of April 2022, Twitter has a market cap of $36.70 billion.
•Twitter board is not interested in Alon's takeover proposal.
To avoid this type of hostile takeover, the Twitter’s board is now considering using a “poison pill”
to make it more difficult for Elon as well as other share holder to acquire a large stake in the company.