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In a move that was predicted by many, Twitter has resorted to an extreme measure to prevent billionaire Elon Musk from taking over the social media giant.
On Friday, the board of directors voted to drop a “poison pill” despite the damage that such an action could bring, especially to shareholders who are clearly viewed as acceptable collateral damage if that’s what it takes to prevent the return of free speech.
Musk is reportedly speaking to private equity investors who could partner with him, sources told The New York Post.
It was a dramatic action that brings to mind the infamous Vietnam War-era quote that “We had to destroy the village in order to save it,” but these are desperate times for Democrats and their allies in Silicon Valley whose political woes could multiply exponentially if they lose the ability to maintain control over the narrative.
Twitter’s aggressive move likely violated the board’s fiduciary responsibility to shareholders and could bring a flood of lawsuits that could be biblical in nature, a possibility that Musk himself suggested.
“If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty,” Musk wrote this week. “The liability they would thereby assume would be titanic in scale.”
If the current Twitter board takes actions contrary to shareholder interests, they would be breaching their fiduciary duty.
The liability they would thereby assume would be titanic in scale.
— Elon Musk (@elonmusk) April 14, 2022
The implications could definitely be “titanic,” as in RMS Titanic.
Investopedia describes a poison pill as follows:
“The term poison pill refers to a defense strategy used by a target firm to prevent or discourage a potential hostile takeover by an acquiring company. Potential targets use this tactic in order to make them look less attractive to the potential acquirer. Although they’re not always the first—and best—way to defend a company, poison pills are generally very effective.”
The SpaceX/Tesla CEO also spoke of a “Plan B” when asked if he has a fallback option during an interview at a TED conference in Vancouver on Thursday.
Here's @elonmusk describing that he has a plan B if Twitter rejects his buyout offer. pic.twitter.com/WygtITru8j
— Dave Lee (@heydave7) April 14, 2022
Twitter was absolutely buzzing after the company’s attempted checkmate of Musk.
Clay Travis of Outkick and the nationally syndicated Clay & Buck radio program wrote, “I am a long time @twitter shareholder. Today’s actions by the board violate their fiduciary duty to maximize shareholder returns and if they don’t lead to a sell of the company for over $54.20 will lead to monster lawsuits costing the company billions of dollars.”
I am a long time @twitter shareholder. Today’s actions by the board violate their fiduciary duty to maximize shareholder returns and if they don’t lead to a sell of the company for over $54.20 will lead to monster lawsuits costing the company billions of dollars.
— Clay Travis (@ClayTravis) April 15, 2022
“Twitter’s insiders essentially just decided to screw over their shareholders, crash their stock, and open the company up to massive lawsuits just to prevent Elon Musk from running Twitter in a way that won’t rig elections or censor their political opponents,” tweeted digital strategist Greg Price.
Twitter's insiders essentially just decided to screw over their shareholders, crash their stock, and open the company up to massive lawsuits just to prevent Elon Musk from running Twitter in a way that won't rig elections or censor their political opponents.
— Greg Price (@greg_price11) April 15, 2022
He added, “Even if Elon doesn’t end up buying Twitter, he just exposed the censorship regime in a major way. He’s an outsider who won’t play by their rules and they’ll even deliberately dilute shares (which should be illegal) to continue their campaign of mass information control.”
Even if Elon doesn’t end up buying Twitter, he just exposed the censorship regime in a major way. He’s an outsider who won’t play by their rules and they’ll even deliberately dilute shares (which should be illegal) to continue their campaign of mass information control.
— Greg Price (@greg_price11) April 15, 2022
Other reactions poured in to the board’s decision to secure the censorship regime over the interests of shareholders.
They'd rather burn the place to the ground than have a level playing field. https://t.co/KSddEJgQ7J
— john jackson (@pvtjokerus) April 15, 2022
Today the board of #Twitter basically told their shareholders that they would rather crash the entire company than let Elon Musk buy them out fairly.
— Internet Bill Of Rights (@WikiLeaksUS) April 15, 2022
Activate Plan B
— Jack Posobiec ☦️ (@JackPosobiec) April 15, 2022
.@Twitter board willing to destroy company to stop @ElonMusk?
— Tom Fitton (@TomFitton) April 15, 2022
They aligned with the CIA, the FBI, neocons and corporate media in the name of stopping Trump.
So, yes, they are more than happy to align with Saudi monarchs, Wall St. hedge funds and various Good Billionaires to prevent Twitter from falling into the wrong hands. https://t.co/sVLA0Y47JK
— Glenn Greenwald (@ggreenwald) April 15, 2022
Elon Musk controlling Twitter and allowing for free speech is literally worse than Pearl Harbor!!!
You know it’s coming folks
— Donald Trump Jr. (@DonaldJTrumpJr) April 15, 2022
Twitter’s board of directors just robbed shareholders out of billions of dollars. It’s Enron all over again.
— Cernovich (@Cernovich) April 15, 2022
FYI Twitter did *not* reject Elon Musk's offer. This is a misconception of what occurred.
-If they had rejected his offer, they would have breached their fiduciary duty.
-As expexted, they're using a tactic known as a "poison pill" 2 make it difficult for him 2 acquire control.
— 👑 Sιʀ Mαχιмυs Ɖʀαкє🦜 (@Maximus_4EVR) April 15, 2022
Dear Twitter board members:
Make sure you have ironclad directors insurance before voting against @elonmusk's bid.What will happen next:
– He will dump his shares and go for "Plan B" (you know what it is)
– Twitter stock price will plummet
– Shareholder lawsuits may follow— Dr. Eli David (@DrEliDavid) April 15, 2022
This Elon Musk twitter fiasco ought to have you fully awake on how desperate the ruling class is to maintain control of the Narrative.
— Oilfield Rando (@Oilfield_Rando) April 15, 2022
. @ElonMusk has revealed the Twitter board for what they really are
— Jack Posobiec ☦️ (@JackPosobiec) April 15, 2022
On Friday evening, the New York Post reported that Musk could be considering bringing in partners for his bid to gain control of Twitter but details are sketchy as of this time.
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Chris Donaldson is an ordinary American who is concerned about rampant corruption as well as the ongoing attacks on our way of life by those who have contempt for our hard-earned freedoms. A Navy veteran, he has been a frequent contributor to conservative websites and resides in Florida.
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