Twitter accepts ‘poison pill’ protection against attempt to buy musk
Twitter moved to defend itself against Elon Musk’s $ 43 billion takeover attempt on Friday, announcing plans to allow shareholders to buy additional shares.
Muskin’s proposal faces uncertainty on several fronts, including rejection and the challenge of assembling the money.
As the struggle to control the social media platform intensified, Twitter’s group unanimously adopted the Partner Rights program, also known as the “poison pill”.
“The rights plan will reduce the chances of any company, individual or group gaining control of Twitter through open market accumulation without paying the right regulatory premium to all stakeholders,” Twitter said in a statement.
Musk sent shockwaves through the tech world on Thursday, saying the promotion of freedom of speech on Twitter was one of the main reasons why he called the company his “best and ultimate offer” in an unsolicited auction to buy the company.
The world’s richest man has paid $ 54.20 a share, valued the social media company at $ 43 billion, which was disclosed to the Securities and Exchange Commission on Thursday.
At a conference in Canada, Musk said he was “not sure” he would win, but agreed to “Plan B” but declined to comment, noting that the rejection of the filing would make him consider selling his stake.
Musk announced last week that it had bought 73.5 million shares, or 9.2 percent, of Twitter’s public shares, raising its stake by more than 25 percent.
If the buyer takes 15 percent or more of Twitter’s outstanding common stock in a transaction not approved by the board, the board’s “rights plan” will begin.
Musk said he could “buy technically” but did not provide any information about the funding, although he would have to borrow some of the money or shares of Tesla or SpaceX.
He said he would like to take the company privately, but the company would have a maximum of 2,000 allowed investors.
Some investors, including businessman and Saudi prince Alwaleed bin Talal, have already spoken out against the plan.
Morningstar Research analysts echoed that perspective, saying, “When the board considers the Tesla CEO’s offer, we believe Twitter has less than a 50 percent chance of accepting it.”
Twitter shares fell nearly two percent on Thursday.
Musk’s move marks another turning point in the roller-coaster journey of his unstable relationship with the global social media service, and raises many questions about what’s next.
He was offered a seat on the board but turned it down over the weekend.
Even in the Silicon Valley world known for disrupting markets and changing lifestyles, Kasturi is becoming a business person.
The series’ entrepreneurial endeavors include switching to electric vehicles with Tesla, private space exploration and connecting computers to the brain.
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