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Twitter board enacts plan to block Elon Musk takeover

Twitter’s board of directors is taking defensive measures to prevent Elon Musk, the world’s richest man and a self-confessed freedom-of-speech absolutist, from taking over the company.

The censorship-friendly, left-leaning social media platform has launched a shareholder rights plan, a corporate tactic designed to thwart takeovers.

Twitter CEO Parag Agrawal

Twitter CEO Parag Agrawal (Google Cloud/YouTube)

Tesla boss Elon Musk is at a loss

Tesla CEO Elon Musk is confused (Image: Mark Brake/Getty)

Colloquially known as the “poison pill,” the move allows existing shareholders to buy more shares at a reduced price, diluting any shareholder’s share of wanting to acquire the entire company and, in theory, increasing the cost of doing so.

In a press release, Twitter said the limited-duration rights plan, which is triggered if Musk’s stake grows to 15 percent or more, is in effect until May 2023, “will reduce the likelihood that a company, person, or Group control of the company, Twitter gains through accumulation in the open market.”

The Rights Plan is designed to enable all shareholders to realize the full value of their investment in Twitter. The rights plan will reduce the likelihood that a company, individual or group will gain control of Twitter through accumulation in the open market without paying all shareholders a reasonable control premium or allowing the board of directors adequate time to make informed decisions and To take actions that are in the best interests of shareholders.

The rights plan does not prevent the board from engaging with parties or accepting an acquisition proposal when the board believes doing so is in the best interests of Twitter and its shareholders.

While the Rights Plan will increase the cost of any takeover attempt, it still relies on existing shareholders’ appetites to buy shares at a price that prevents Musk or any other party from acquiring a large enough stake to run the company to take over.

However, since most of Twitter’s top shareholders are giant investment firms managing trillions of dollars in assets, such as BlackRock, Vanguard, and State Street, their resources vastly exceed those of any individual – even the richest man in the world.

There would still be an acquisition avenue available to Musk if he garnered enough shareholder support to vote out Twitter’s current directors.

The prospect of a free speech absolutist taking over Twitter has the regime’s elites in turmoil. In addition to the meltdowns from progressives on social media and reported panics from waking employees within the company itself, there have even been warnings from a former Securities & Exchange Commission chairman that the Biden administration may seek to block Musk’s takeover bid.

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

https://www.breitbart.com/tech/2022/04/15/poison-pill-twitter-board-enacts-plan-to-block-takeover-by-elon-musk/ Twitter board enacts plan to block Elon Musk takeover

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