Elon is no longer bound by the rules attached to accepting a Twitter board seat, so he could attempt a takeover of the platform.
👉 Background: With around 80 million followers and a smart mouth, Elon Musk was already the king of Twitter. But then he bought a 9.2% stake in the company just to make things official.
👉 What happened: That made him Twitter's largest shareholder. And earned him a seat on the company's board. But now, he's gone and done a 180 and turned down the position.
👉 What else: Not joining the board means ol' m8 Elon doesn't need to keep his stake in Twitter below 14.9%. And, if he really wants to, he can make a hostile bid for the company.
💡 A hostile takeover is where an entity tries to acquire a publicly traded company without the agreement or consent of that company’s board of directors.
💡 It is legal but it ain't pretty - that's why they call it hostile. Ya see, you don't really need the board's consent to takeover a company. But you do need shareholder votes.
💡 Technically, Elon could go straight to Twitter's shareholders and ask them. And if they accept, he's in. The other option is the ol' proxy fight, where shareholders vote to throw the board right out.
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