Why Twitter Board Members Reject Elon Musk’s Purchase Offer?

Twitter’s board members are still rejecting the offer of Elon Musk to buy the giant social media platform. Recently, the popular billionaire made headlines after becoming the largest shareholder of Twitter.  

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Tesla CEO Elon Musk arrives at federal court, April 4, 2019 in New York City. A federal judge will hear oral arguments this afternoon in a lawsuit brought by the U.S. Securities and Exchange Commission (SEC) that seeks to hold Musk in contempt for violating a settlement deal.

Now, he is planning to buy the online platform. Musk said he wants to purchase 100% of Twitter’s shares, offering $54.20 per share in cash. 

If Twitter’s board members accept, the billionaire can really buy the social media giant since his net worth is currently juggling around $277 billion. 

Meanwhile, Twitter’s total valuation is $37 billion. But, the CEO said that he is willing to buy all of its shares for $43 billion, as reported by The Verge

Why Twitter’s Board Members Reject Elon Musk’s Offer

CNBC’s Jim Cramer, a reliable American EV personality, claimed that Twitter’s board members have no choice but to refuse the purchase offer of the Tesla CEO.

Why Twitter Board Members Rejects Elon Musk's Purchase Offer? Tesla Shares Decrease After CEO's Bid

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Elon Musk gestures as he speaks during a press conference at SpaceX’s Starbase facility near Boca Chica Village in South Texas on February 10, 2022. – Billionaire entrepreneur Elon Musk delivered an eagerly-awaited update on SpaceX’s Starship, a prototype rocket the company is developing for crewed interplanetary exploration. (Photo by JIM WATSON / AFP)

Also Read: Elon Musk is Not Joining the Twitter Board, CEO Parag Agrawal Confirms

“They have no choice but to reject it. If they say, ‘we accept,’ they’re phony. And they’re not phonies,” said the journalist. 

On the other hand, Twitter’s Board of Directors said that they are still reviewing the offer of the billionaire since this is the best action they can do. They added that checking the proposal of Musk will benefit all Twitter stockholders. 

But, Cramer explained that it would be the board members’ personal liability if they accept the CEO’s purchase proposal, warning that if Musk is able to purchase the social media giant, it will be a sign that the board members are not really doing their job. 

Meanwhile, the acquisition offer Elon seems to affect Tesla.  

Tesla’s Shares are Now Falling

After Elon made the controversial Twitter purchase proposal, Tesla’s shares seemed to dip. As of press time, the value of the automaker’s stocks has already decreased by 14%. 

This could affect Tesla, especially since the EV maker is already facing some production issues in Shanghai due to the citywide lockdown conducted by Chinese officials. 

Meanwhile, Twitter’s employees shared their disappointment regarding the ongoing issue with Elon Musk and the online platform. 

On the other hand, Jeff Bezos and Marc Andreesen responded to the billionaire’s suggestion to make Twitter’s HQ into a homeless shelter. 

For more news updates about the controversial Twitter purchase proposal of Musk and other similar stories, always keep your tabs open here at TechTimes.  

Related Article: Elon Musk Gets Lawsuit from Twitter Investor for Hiding his 5% Stake on Twitter Last January

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Written by: Griffin Davis

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