Twitter Plays ‘Poison Pill’ – But Musk’s Response Shows He’s All In to Win

After Elon Musk offered to purchase Twitter for $43 billion, the company pushed back by announcing a new plan, referred to as a “poison pill.” This allows shareholders’ rights to become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the board. In the event that the rights become exercisable, existing Twitter shareholders — except for the person, entity or group triggering the plan — would be entitled to purchase additional shares of common stock at a discount. Musk currently has a 9.2% stake in Twitter.

Despite this move, Musk isn’t backing down. Musk also wasn’t frightened away by another story that claimed the SEC and DOJ might be looking into him for possible violations. Instead, sources close to the situation say he’s all in. “This is not over,” a source close to the situation told the NY Post.

Sources revealed that Elon is speaking to investors to come in with him to buy Twitter outright. One of the possible partners named is Silver Lake Partners, a private equity firm. A Musk spokesperson did not confirm this report from NY Post. It’s likely this plan is hidden until it becomes finalized.

Moreover, Musk has announced that he’s “not sure that I will actually be able to acquire [Twitter],” but added that “there is a Plan B.” Musk declined to elaborate what plan B entails, but many people suspect it could include creating his own platform that allows for free speech.

In a message to the chairman of the board, Musk says Twitter has “potential to be the platform for free speech around the globe,” but it’s currently failing to meet this goal. “Free speech is a societal imperative for a functioning democracy,” Musk says.

“Twitter has extraordinary potential. I will unlock it,” Musk says in the letter. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.” Many people believe this suggests Musk might dump his current position as he owns over 9% of the company as the largest shareholder. This has the potential to cause the price of shares to drop significantly if Musk plans to create a new platform for free speech.

“I am not playing the back-and-forth game,” Musk says. “I have moved straight to the end. It’s a high price and your shareholders will love it. If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” Musk concludes.

Many people believe Musk slipped in yet another joke into a major buyout proposal. After Musk notoriously smoked pot during a podcast interview with Joe Rogan, this has evolved into a running joke for Musk.

Musk specifically offered to buy Twitter at $54.20 per share – a number that just happens to include a “420” reference to pot smoking, the NY Post reports.

“The number has a special significance for pot enthusiasts – and for Musk himself, whose frequent inclusion of the reference in serious business dealings has spawned countless memes,” the Post writes.

It’s unclear whether the board of Twitter will accept this offer.

Left-wing CEO Parag Agrawal has publicly admitted that Twitter is not obligated to allow for free speech, which is Musk’s central goal.

The company’s liberal workforce have openly opposed Musk’s involvement in Twitter.

More on this story via Fox News:

However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.

Musk’s best and final offer was to pay $54.20 per share for 100% of Twitter, and said that if his offer was not accepted he’d have to reconsider his position as a shareholder, according to an SEC filing.

Musk recently disclosed a 9.2% stake in Twitter, but he rejected an offer to join its board of directors and criticized the social media platform in tweets.

He wrote in the filing that he’d want to “transform” the social media platform as a private company.

“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk wrote. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form.”

Musk said the takeover attempt is “not a threat, it’s simply not a good investment without the changes that need to be made.”