As per the current reports, it is said that the billionaire Elon Musk is interesting to take the microblogging app Twitter into his hands same as he does with his Tesla. He said, he absolutely wants to buy Twitter as a whole, taking it privately to restore its commitment to what he terms “free speech”. However, soon after his speech, company Twitter started to take steps to thwart his hands with the company. The company now announces that it is taking a ‘poison pill’ move to prevent Musk from acquiring the largest share of Twitter.
As per Twitter’s move of ‘poison pill’, if any individual investor or firm comes forward to acquire more than a 15% stake, Twitter aims to reduce the share percentage of people like Musk by bringing more shares to the market. Elon Musk is moving to acquire shares worth $ 43 billion, valued at $ 54.20 per share. Musk revealed his move in a filing with the U.S. Securities and Exchange Commission.
‘Poison pill’ strategy
The plan is the shareholder rights plan, according to it, it does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders,” the company said.
A poison pill defense strategy allows existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of the opposite party. Poison pills are common among companies under fire from activist investors or in hostile takeover situations. According to Twitter’s plan, each right will give its owner the right to purchase additional shares of Common Stock at current market value, twice the excise price of the rights.
Meanwhile, Musk said in a letter to the Twitter board that Twitter would not grow in a current way or improve its freedom of expression policy. Musk explained that the goal was to take over the company and bring about radical change. It was Musk’s surprise announcement, to pay $54.20 a share for Twitter, valuing it at about $40bn.
Why Elon Musk interested in Twitter
Musk in his speech said, “Iam not focusing on the benefit or profit from Twitter, rather my aim to buy the shares of Twitter is just because to create a better future for the public out of it. Apparently, the service does not live up to its potential as a “platform for freedom. A common platform that is as reliable and comprehensive as possible is vital to the future of civilization. He added: “Twitter has extraordinary potential. I will unlock it.”
Earlier, Musk was also confronted via Twitter for his company Tesla retaliating against Black workers who spoke up about discrimination. He has also blocked Twitter users who question or disagree with him, at the same time, Musk says he is a free speaker on Twitter.
Musk also says, Twitter is not living up to its potential to be a “platform for free speech,” he seems to be saying he would scale back content moderation. But he has also called for the company to crack down on spam accounts, which implies more moderation. In his proposal moves, he says dropping ads from the service, ads are how Twitter makes money and making its San Francisco headquarters into a homeless shelter. He also seems to approve of a button to edit tweets.
Musk also revealed that his first job, if his offer is accepted, would be to open up the Twitter algorithm so that the decisions it makes can be seen by everyone. The code needs to go on a platform such as GitHub so that other programmers can see it and make suggestions rather like the operating system Linux was built, he said.