DETROIT (AP) — Twitter has dropped a major roadblock in front of Elon Musk's effort to take over the company, leaving investors to wonder about the mercurial Tesla CEO's next move.
Twitter has adopted a "poison pill" defense that makes it difficult for Musk or any other investor to buy Twitter without the board of directors' approval.
Musk, who currently owns about 9% of the company, last week disclosed an offer of about $43 billion, or $54.20 per share.
Twitter's next likely move is to formally reject Musk's offer, or it could start negotiations.
Musk has a number of options which also include talks with the board, sweetening his offer, or even triggering the poison pill, which could destroy the company.
On Monday, Musk tweeted that if he were to acquire Twitter, the company's board of directors wouldn’t be compensated for serving.
“Board salary will be $0 if my bid succeeds, so that’s ~$3M/year saved right there,” Musk tweeted.
Musk has been outspoken about the social media company.
In an SEC filing, Musk stated that the company "needs to be transformed as a private company because it's "neither thrive nor serve this societal imperative in its current form," USA Today reported.