Elon Musk Takes Twitter Private, Reshaping Leadership and Ownership Structure

In a landmark move, Elon Musk has officially taken Twitter private, dismissing the entire board of directors as part of his acquisition. The outgoing board, led by Brett Taylor, confirmed the deal via a tweet, marking the end of a contentious process that saw Musk critique their management and strategies.

Musk had been vocal about his opposition to the board’s “poison pill” strategy, designed to prevent his takeover by diluting his stake if it exceeded 14.9%. Musk described the strategy as a self-serving move that disregarded shareholders’ interests, further fueling his determination to restructure the company.

As part of the acquisition, Jack Dorsey, Twitter’s co-founder and former CEO, is set to receive an estimated payout of nearly $1 billion. Dorsey’s inclusion in the new board is a strong possibility, signaling a potential return to influence under Musk’s leadership.

Musk has announced plans to eliminate board salaries, a decision he claims will save approximately $3 million annually. He argued that the previous board members had largely passive roles, and his focus will be on creating a more streamlined, active leadership team.

While the future of Twitter’s current CEO, Parag Agrawal, remains uncertain, Musk has hinted that he may retain his position, depending on the direction of the company under its new management.

The acquisition also brings substantial payouts for major stakeholders, including the Vanguard Group and Kingdom Holding Company. The Vanguard Group is expected to receive approximately $4.5 billion, underscoring the significant financial shifts involved in the transition.

Musk’s vision for Twitter’s future includes a focus on innovation, transparency, and maximizing the platform’s potential as a global town square. As the company transitions into private ownership, the changes under Musk’s leadership are likely to redefine its operations and role in the tech industry.