Update April 19, 2022: Hours after Elon Musk’s $43 billion bid, Twitter has taken steps to guard against a potential hostile takeover of the billionaire. In a press release, the board of directors of the Blue Bird company adopted a limited-term shareholder rights plan.
The plan, dubbed the “poison pill,” provides that if an entity acquires at least 15% of Twitter’s outstanding common stock without board approval, other shareholders will be able to buy additional shares at a reduced price. This “poison pill” thus makes it possible to dilute the participation of the entity that intends to take control. The press release specifies that this measure does not preclude the board of directors from accepting a takeover bid if it considers it to be in the best interest of the company and its shareholders. According to Reuters, the Thoma Bravo fund is studying the possibility of making an offer.
April 14, 2022 Original News: Elon Musk Makes a Non-Negotiable Offer to Buy Twitter
A few days after acquiring 9.2% of the capital of Twitter, Elon Musk made an offer to buy 100% of the shares of the company. The capricious head of Tesla and SpaceX shared via tweet the documents sent to the SEC (US Securities and Exchange Commission), which includes the letter addressed to Bret Taylor, chairman of the board of directors of Twitter.
I made an offer https://t.co/VvreuPMeLu
— Elon Musk (@elonmusk) April 14, 2022
Elon Musk offers to buy the social network at a price of $54.20 per share, “a 54% premium over the day before I started investing in Twitter,” says the billionaire entrepreneur. last offer. According to him, the microblogging service has extraordinary potential that could only be unleashed with its withdrawal from the stock market. In case of refusal, Elon Musk will reconsider his position as a shareholder. The announcement of the offer sent Twitter’s share price up 18% pre-opening on Wall Street.
In a brief statement, Twitter confirms receipt of the offer, stating that its board of directors will carefully consider it “to determine the course of action that it believes is in the best interests of the company and all of Twitter’s shareholders.”
Refusal to sit on the board of directors
Elon Musk’s acquisition of a majority stake in Twitter was announced by the interested party on April 4. Shortly after taking a stake, Elon Musk was offered a seat on the company’s board of directors, which he ultimately turned down. A few days earlier, he had posted a survey on social media, asking whether Twitter strictly adheres to the principle of freedom of expression “essential to the proper functioning of a democracy.”
Freedom of expression is essential for a functioning democracy.
Do you believe that Twitter strictly adheres to this principle?
— Elon Musk (@elonmusk) March 25, 2022
Many believe that the Tesla boss wants to act against measures the network is taking to combat behavior it deems harmful. “Musk’s sudden rise from Twitter critic to Twitter leader has understandably sparked speculation, both inside and outside the company, about how the outspoken tycoon could wield power over its rules,” analyzes the Washington Post. Before wondering if the billionaire would pressure Twitter to reverse its decision to ban former President Donald Trump from its network.
Edit your tweets after they’re published: the feature will be tested soon
Elon Musk is also campaigning for the addition of a button to edit tweets once they’re published. A feature that Twitter founder Jack Dorsey (who stepped down as CEO last November) has always refused to implement. On this April 1, the official account of the social network indicated that he was working on the development of such a button. April first? Asked about this by Newsweek media, Twitter responded with humor: “We can’t confirm or deny it, but we may modify our statement later.” The company has finally confirmed that it has been working on it since last year and that it is preparing to test this functionality in the coming months.