On Thursday, The 14th of April, the American entrepreneur Elon Musk made an offer of $43 billions to buy Twitter. Twitter’s board of directors responded to the offer by presenting a poison pill the day after Musk revealed his intention to buy Twitter. This is the board’s way of rejecting the offer by saying, “Thanks, but no thanks.”
The poison pill is referred to as a new rights plan of shareholders that enables some shareholders to buy more stock if Musk or another buyer tries to take control. It also shows that the company’s board of directors are planning to oppose Musk’s attempt for exclusive ownership of the firm. Musk has written a letter to the twitter chairmen Bret Taylor, in which he has mentioned that:
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,”
Musk posted a poll on twitter in which he collected recommendations for ways to improve Twitter. The company further replied by providing him a seat on the board of directors, that will limit his ownership to only 15% share of the company. Initially, he answered yes. Then Elon had a change of plan and denied the offer.
According to Elon Musk twitter has to go private since it can “neither prosper nor serve” free expression in its current position. Therefore, Musk said:
“As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced,”
he further wrote. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
Twitter Because You Can Not Say That on Facebook
Twitter is ready to fight Elon. However, we do not know how this saga is going to settle down. Let’s see, how it takes turn?