Report: Twitter board to reject Musk's $43 billion buyout offer

Twitter's board of directors will formally reject Elon Musk's $43 billion buyout offer, sources tell The Wall Street Journal.

Twitter's board has decided not to sell itself to tech magnate Elon Musk, and is instead prepared to shop around for another potential buyer. Leading buyout firm Apollo may support a separate buyout by offering equity to another bidder.

It's believed that Twitter's board has put the company "in play" by declining Musk's offer and now has one sole responsibility: To take a deal that maximizes shareholder value.

Some background: Elon Musk recently purchased a 9.2% stake in Twitter for $2.9 billion. Investors believed Musk would sit on the board, but the billionaire wants to instead purchase all remaining Twitter shares in a $43 billion mega buyout for $54 per share.

The company's board is currently in a bit of a spat with Musk. The board recently implemented a limited duration shareholder rights plan, also known as a "poison pill," a tactic used to prevent hostile takeovers. This plan offers new stock to existing shareholders in the attempt to dilute percentage stake ownership of a hostile party--Musk in this case.

Musk struck back by saying he will eliminate the board's salary if his bid is accepted.