Elon Musk’s Twitter hostile take over attempt is just another publicity stunt in this never ending soap opera to dominate the news cycle.
Most alarming is Musk’s plan to take down the guard rails which put some constraints in what is deemed appropriate in Twitter land.
Donald Trump’s blatant lies and incendiary rants resulted in his suspension from Twitter along with violent reactionaries responsible for the attempted Coup d’etat on January 6, 2021.
Perhaps Elon Musk can secure financing for his hostile takeover from Jamie Dimon, CEO of JP Morgan Chase.
In the top photo a cyclist is pedaling by Twitter headquarters in San Francisco at 10th and Market Street. A CAR FREE thoroughfare all the way to the historic Ferry Building. The Corner site was formerly a Chase Bank branch.
Excerpted from The New York Times 4.14.2022
Twitter’s board is considering a defensive move known as a poison pill that would severely limit Elon Musk’s ability to acquire the social media giant, two people with knowledge of the situation said.
Prince Al Waleed bin Talal of Saudi Arabia, who described himself as one of Twitter’s largest and most long-term shareholders, said that Twitter should reject Mr. Musk’s because the offer was not high enough to reflect “intrinsic value” of the company.
The board met on Thursday to discuss Mr. Musk’s offer to buy the company, according to one of the people, who wasn’t authorized to speak publicly. The directors are weighing whether to move ahead with the poison pill — formally called a shareholder rights plan — that would limit the ability of a single shareholder, like Mr. Musk, to acquire a critical mass of shares in the open market and force the company into a sale.
The poison pill defense is a common tactic used by companies that want to fend off unwelcome takeover offers. It essentially lets the company flood the market with new shares or allow existing shareholders other than the potential acquirer to buy shares at a discount. This dilutes the bidder’s stake and makes buying shares more expensive.
The Wall Street Journal earlier reported that Twitter was weighing a poison pill.
If Twitter’s board rejects Mr. Musk’s bid, he could put his offer directly to shareholders, rather than the board, by launching a so-called tender offer. If Twitter’s other shareholders like Mr. Musk’s offer, which is currently at $54.20 a share, they could sell their stock directly to the billionaire, allowing him to gain control of the company.
“It would be utterly indefensible not to put this offer to a shareholder vote,” Mr. Musk said in a Twitter post on Thursday. “They own the company, not the board of directors.”
But Twitter’s investors on Thursday seemed underwhelmed with Mr. Musk’s bid, potentially over concerns as to how he would finance it. While share of companies typically rise when there is takeover speculation, Twitter’s were down almost 2 percent on Thursday.
Twitter’s other top shareholders, according to FactSet, include The Vanguard Group, the company’s largest shareholder, with a 10.3 percent stake; Morgan Stanley Investment Management, with a 8 percent stake; and BlackRock Fund Advisors, with a 4.6 percent stake. Vanguard and Morgan Stanley Investment Management declined to comment on Mr. Musk’s bid. BlackRock did not immediately respond to requests for comment.
Mr. Musk turned down a seat on Twitter’s board over the weekend, leaving directors who had recently welcomed him to their ranks to weigh a proposal in which Mr. Musk said he had no confidence in their management of the company.