1646511609 Musk helps Ukraine with Starlink but ponders potentially fatal aftermath

Why Elon Musk may be able to pull off Twitter acquisition

It seems that Twitter’s Board of Directors does not approve of the takeover offer from tech entrepreneur and avid twitterer Elon Musk. The billionaire, of course, has an opinion on that and was pretty quick to respond to that rumor. His response is that it is not up to the board; it is ultimately up to the shareholders.

Last Thursday, Twitter’s board of directors let it be known that they were not waiting for Elon Musk’s bid. This is according to information held by the paid journalism website The Information. That news website bases its reporting on sources familiar with the current situation.

Twitter doesn’t want to be taken over by Elon Musk

The board would rather back the company’s brand new CEO, Parag Argawal. Moreover, the company still has some resources behind it to be able to avoid being taken over just like that. For example, Twitter can issue a blank check preferred stock, according to the Wall Street Journal.

That option allows the company to release shares to certain investors on very short notice. To do so, Twitter does not need permission from existing shareholders. Should the company choose to do this, the strong position that Elon Musk has, as the largest shareholder, could at least be undermined.

Today’s largest shareholder

Musk is currently the largest shareholder of the moment with 9.2 percent of the shares in his hands. He paid a lot of money for it. Since then, the entrepreneur has been sending all kinds of remarkable tweets into the world, asking questions about Twitter. But whether he will ever do anything with them is, of course, another matter.

That this seemed to be only the beginning of what Elon Musk is planning became clear a few days later. Then it suddenly came out that the SpaceX and Tesla chief wants to take over Twitter for a sum of 38 billion euros. But as it looks now, the entrepreneur is probably not going to succeed.