Elon Musk, the world's richest man, has suggested a $43 billion purchase of Twitter Inc. It's almost as if the firm's management is being attacked for how a single person can acquire the entire company. On the other hand, Elon Musk is ecstatic with Twitter's active daily users, which number more than 200 million, and he wants to use the network to promote free expression.  Musk said he'll pay $54.20 a share in cash, 38% more than the price on April 1, the last trading day before he went public with his investment.

The Twitter vision of Elon Musk

According to Elon Musk, he wants to unlock twitter for potential free speech platforms.  He has always advocated for the value of freedom of expression. He is dissatisfied with Twitter's excessive restrictions and has publicly reprimanded the company for it, as well as proposed a fundamental shift of power in social networking from companies to people.

Mr. Musk wrote to Bret Taylor, the head of Twitter's board, saying, "I invested in Twitter because I believe in its potential to be the platform for free expression throughout the world." Furthermore, "I believe that free expression is a basic requirement for a healthy democracy."

Twitter response

Things were a little different on Twitter. After Musk's proposal, the employees of the firms are shaken and tensed. Then Twitter management planned an emergency all-hands meeting to give relief to the staff. The CEO Parag Agarawal himself conducted the meeting, which looked serious.

Several employees were frustrated that Mr. Agrawal had not been more forthright when Mr. Musk initially began surreptitiously buying up large quantities of the company's shares. Mr. Agrawal stated that the board had spoken with Mr. Musk numerous times and that the board members thought they were on the same page on important topics.

Here are the roadblocks in his way to buying the social networking app

Elon musk wants to acquire the entire firm and turn it into a private corporation; otherwise, it is difficult to succeed in his vision. Musk's takeover attempt, however, may be hindered by Twitter's powerful board of directors and personnel and Musk's own resources.

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A 'poison pill' is being used by Twitter

To counter Musk's takeover bid, Twitter implemented a "poison pill" strategy. The scheme, formally known as a "shareholder's rights plan," would allow shareholders other than Musk to purchase extra stock at a reduced price, which leads to the flood of the market with the shares and would then sell at a premium. That would make it impossible for Musk, who currently owns over 9% of the firm, to acquire a significantly larger share without spending a lot of money.

The Twitter board of directors isn't giving out any positive vibes

Musk's offer has been met with skepticism by the firm. The poison pill clause is a major indicator of the board's hesitation, though it did indicate in a statement that it will "seriously consider" the offer, as required by shareholders. Musk's offer price of $54.20 per share is an 18% premium above Twitter's stock price, although it remains much below the company's high at the beginning of 2021. However, some analysts believe the offer is undervalued and that the board must also respond to shareholders, some of whom have already voiced their opposition to Musk's bid.

Musk already owns and operates several businesses

Musk is already overworked, and some experts fear that adding yet another firm would overburden him. He is already the CEO of Tesla, SpaceX, the Boring Startup, and Neuralink, a company that develops brain microchips.

Twitter is also not a company that should be neglected, and it will be difficult for him to give time to this platform. However, Musk had said he has a backup plan to buy twitter if his effort fails while takeover, although he didn't elaborate.