Twitter Blocks Elon Musk
This is crazy.
In an attempt to stop Tesla CEO Elon Musk from turning Twitter, Twitter’s board of directors have developed a plan often referred to as a “poison pill” which is to prevent Musk from committing a “hostile takeover” of the company for $43 billion.
According to The Hill, under this new “poison pill” plan. Twitter heads have decided that if Musk attempts to purchase more than 15% of the company’s shares without the board’s approval, other shareholders can buy up more stock shares as well but at a discount.
Following the decision, Twitter said, “The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders.”
A Twitter spokesperson then said they will not discussing the decision any further.
WedBush Securities analyst Dan Ives called the move by Twitter’s board of directors a “predictable defensive measure” and that other shareholder won’t view it as a “positive” decision by them.
“The Board has [their] back against the wall and Musk and shareholders will likely challenge the merits of the poison pill in the courts. We believe Musk and his team expected this poker move which will be perceived as a sign of weakness not strength by the Street,” Ives explained.
It looks like the liberal owners of Twitter are very scared about turning Twitter in a free speech platform and letting people such as former President Donald Trump back onto it.
