National NewsUSA News

Twitter board adopts plan to block Elon Musk takeover

Twitter’s board is deploying defensive measures to prevent Elon Musk, the world’s richest man and avowed free speech absolutist, from taking control of the company.

The pro-censorship, left-leaning social media platform has adopted a shareholder rights plan, a corporate tactic used to deter takeovers.

Parag Agrawal, CEO of Twitter (Google Cloud/YouTube)

Tesla CEO Elon Musk is puzzled

Tesla CEO Elon Musk is puzzled (Mark Brake/Getty)

Colloquially known as the “poison pill”, the measure allows existing shareholders to buy more shares at a reduced price, diluting the stake of any shareholder seeking to acquire the whole company and theoretically increasing costs. to do.

In a press release, Twitter said the time-limited rights plan, which will be triggered if Musk’s share reaches 15% or more, will be in effect until May 2023, “will reduce the likelihood that an entity, a person or group takes control of Twitter through open market accumulation.

The rights plan is intended to allow 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 will obtain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without giving the board sufficient time to make informed judgments and take actions that are in the best interest. shareholders.

The Rights Plan does not preclude the Board of Directors from engaging with parties or accepting an acquisition proposal if it believes it is in the best interests of Twitter and its shareholders.

Although the rights plan will increase the cost of any takeover attempt, it still relies on the appetite of existing shareholders to buy shares at a rate that prevents Musk or any other party from acquiring a large enough stake to take over. the company.

However, since most of Twitter’s major shareholders are giant investment firms that manage trillions of dollars in assets, like BlackRock, Vanguard, and State Street, their resources drastically exceed that of any individual, even the richest man in the world.

There would still be a takeover opportunity available to Musk if he mustered enough shareholder support to elect Twitter’s current directors.

The prospect of a free speech absolutist taking over Twitter has sent regime elites into a frenzy. In addition to the meltdowns of progressives on social media and the panic reported by woke employees within the company itself, a former Securities & Exchange Commission chairman has even warned that the Biden administration may try to block Musk’s takeover attempt.

Allum Bokhari is Breitbart News’ Senior Technology Correspondent. He is the author of #DELETED: Big Tech’s Battle to Erase the Trump Movement and Steal The Election.


Not all news on the site expresses the point of view of the site, but we transmit this news automatically and translate it through programmatic technology on the site and not from a human editor.
Back to top button