Elon Musk hasn’t even bought Twitter yet, but he continues to dominate the discussion on (and off) the platform.
After acquiring a 9.2% surprise ownership stake, he offered yesterday to just buy the whole thing:
That's when the rollercoaster started...
The Saudi Prince made clear he wasn't too fond of Elon and his plan (hmmm, tells you all you need to know, doesn't it)?
And then another bidder emerged that was even higher than Elon:
And that was just yesterday!
Today news has broke that the board is rejecting Elon's offer and launching a so-called "poison pill" to fend him off.
Take a look:
It's official — Twitter is fighting back against Elon Musk's buyout offer with a 'poison pill' defense https://t.co/h8oeOZNJYc
— Insider Tech Business (@insidertechbiz) April 15, 2022
Twitter is considering a poison pill to thwart @elonmusk's offer. They would rather self-immolate than give up their censorship programs. This shows you how deeply committed they are to Orwellian control of the narratives and global discourse. Scary.
— Cameron Winklevoss (@cameron) April 14, 2022
— Eleanor Terrett (@EleanorTerrett) April 15, 2022
Here was the official Press Release from Twitter:
SAN FRANCISCO, April 15, 2022 /PRNewswire/ -- Twitter, Inc. (NYSE: TWTR) today announced that its Board of Directors has unanimously adopted a limited duration shareholder rights plan (the "Rights Plan"). The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter.
The Rights Plan is intended to enable all shareholders to realize the full value of their investment in Twitter. 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.
The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders.
The Rights Plan is similar to other plans adopted by publicly held companies in comparable circumstances. Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter's outstanding common stock in a transaction not approved by the Board. In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.
The Rights Plan will expire on April 14, 2023.
Additional information regarding the Rights Plan will be contained in a Form 8-K to be filed by Twitter with the U.S. Securities and Exchange Commission.
Meanwhile, Elon is rightfully (in my opinion) pointing out that the Board's unilateral decision in rejecting his offer instead of putting it to a shareholder vote may be disastrous and open them up to serious liability.
Here was his exact Tweet:
If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty.
The liability they would thereby assume would be titanic in scale.
— Elon Musk (@elonmusk) April 14, 2022
As of press time for this article, 83% of people have voted YES to the question below, agreeing with Elon:
Taking Twitter private at $54.20 should be up to shareholders, not the board
— Elon Musk (@elonmusk) April 14, 2022
Now, here's the best part...
When you're the world's richest man and arguably the smartest man alive on the planet today, do you give up at the first sign of pushback?
Or do you already have a backup plan ready?
Elon, of course, confirmed he already has a "Plan B".
Take a look here on Rumble:
Elon is keeping the exact details close to the vest, as well he should.
Remind you of anyone?
Initials of DJT?
Many have speculated about how Elon may outmaneuver the Board, and I liked this guy's take from Telegram: