Twitter Intends To Fight Elon Musk's Hostile Takeover Attempt: What Could Happen?
At the company¡¯s all-hands meeting, Twitter CEO Parag Agrawal assured its employees that the company wasn¡¯t being held hostage by Musk¡¯s offer. He started the conversation by stating ¡°Twitter stands for way more than one human, any human.¡±
Twitter¡¯s board might not hesitate to put up a fight against the company¡¯s largest shareholder, after his offer to acquire the microblogging platform for $43 billion yesterday, according to a report from The Information.
Reuters
Also Read: Elon Musk Offers To Buy Twitter For $41 Billion After Becoming Largest Shareholder
As per the report, the board sees Elon Musk¡¯s offer to take over the company as unwelcome.
At the company¡¯s all-hands meeting, Twitter CEO Parag Agrawal assured its employees that the company wasn¡¯t being held hostage by Musk¡¯s offer. He started the conversation by stating ¡°Twitter stands for way more than one human, any human.¡±
According to an anonymous employee who was present at the meeting (in a conversation with Reuters), Agrawal told them, ¡°we as employees control what happens.¡±
What option does Twitter have?
A WSJ report states that the board could also execute a ¡®poison pill¡¯ strategy to prevent Musk from having a hostile takeover.
To the unaware, poison pills can flood the market with shares once an investor acquires stock above a particular limit. This makes them easier to be acquired by others and expensive for a single investor to buy up when someone tries to take over a company.
Ben Thompson from Stratechery has highlighted that Twitter has some poison pill provisions in its bylaws. In fact, it also has a provision for the board to issue ¡®blank check¡¯ preferred stock without seeking any approval.
Reuters
Also Read: Elon Musk Acquires 9.2% Stake In Twitter, Becomes Majority Shareholder
Musk also in a separate Twitter poll asked his followers that the choice of taking Twitter private should be in the hands of the shareholders and not the board, to which 83.9 percent of individuals have agreed with him.
Taking Twitter private at $54.20 should be up to shareholders, not the board
¡ª Elon Musk (@elonmusk) April 14, 2022
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