Elon Musk saw his initial bid to take over Twitter and turn the company private when the social media giant enacted a “poison pill” plan. This essentially made it impossible for any single investor to buy all the shares in the company without the approval of the board. The crafty billionaire is working on a plan to completely bypass that measure.
When a person is as wealthy as Elon Musk, rules don’t matter. That’s why Elon is hatching his “plan b.” Under this plan, Musk will simply bypass the poison pill by having investors buy the majority of the shares and then roll them into a company run by Elon Musk.
While the strategy required some additional money, Elon Musk was able to put together a team to try and get the job done. Private investors will buy smaller shares of the company to avoid the rules set forth by the poison pill. At that point, the board would be helpless to stop a takeover.
If Musk can find enough investors who are friendly to his cause, he might end up reaching his goal of privatizing the company. Elon has made what would otherwise be a dry, uninteresting business deal into a culture war. Musk has turned suspicions about him using the platform to manipulate stock and cryptocurrency markets to his benefit into a 1st Amendment issue of free speech.
Twitter employees are horrified by the prospect of Elon Musk taking over. The Tesla boss’s petty quarrels with the company have escalated to the point where he is willing to dump billions of dollars (likely earned by duping people into his “online movement” in illegal pump-and-dump investment schemes which he benefitted directly from) into getting his way. We will have to wait and see if that happens.
Nobody knows for sure what a privatized Twitter under the control of Elon Musk would look like. Those who watch his practices regularly understand that there is always more to his motivation than what is on the surface. Things could get very interesting if Musk can enact his plan to avoid Twitter’s poison pill.
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