BREAKING: Twitter adopts poison pill strategy to block Elon Musk from possible takeover

It’s just been reported that Twitter has moved quickly and adopted the poison pill strategy to try and block Elon Musk from possible takeover of the company.

Here’s more from CNBC:

Twitter adopted a limited duration shareholder rights plan, often called a “poison pill,” a day after billionaire Elon Musk offered to buy the company for $43 billion, the company announced Friday.

The board voted unanimously to adopt the plan.

Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount.

The plan is set to expire on April 14, 2023.

Such a move is a common way to fend off a potential hostile takeover by diluting the stake of the entity eying the takeover.

This is pretty incredible and it shows just how much these corporate authoritarians hate the idea of free speech that Elon Musk wants to bring back to the platform.

Yesterday Musk noted that a move like this would put Twitter’s board in breach of their fiduciary duty to the shareholders. Now we get to see how the shareholders feel about this move, whether they will approve of it or not.

I believe I saw somewhere yesterday that Musk suggested the shareholders could oust the board if a plan like this was adopted if they didn’t like it.

I checked Musk’s Twitter and so far he hasn’t responded to the poison pill news. At the moment we are only left with his suggestion yesterday that he doesn’t like to lose.

In related news, it seems that Avik Roy is confirming the news from Charlie Gasparino regarding the SEC and DOJ investigating Tesla. He says he’s been told this ‘investigation’ is timed to prevent Musk from buying Twitter:

I’m still skeptical of this until we get more confirmation, so continue to take it with a grain of salt. I’m not saying it isn’t plausible, because it totally is. I just don’t want to headline report it until we get more confirmation. That said, if any of this is true, it’s absolutely scandalous.


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