Good day all. With the announcement that Elon Musk has tendered an offer to the Twitter shareholders to buy up all their shares at a really good price, all the twitlers and Progressive’s went insane. This has led to the Board of Directors putting their fiduciary responsibility right alongside the Russian Cruiser, Moskva.
I will state that I do have a basic understanding of the concept of a “Poison Pill” with regards to blocking a hostile takeover. How the one that the Twitter Board of Directors is putting in place is going to work, if it does at all, I’ll leave to those far better able to explain it. (The comments are available, so have at it!)
From what I’ve been reading, the Board is trying to find a nice Progressive Totalitarian group to counter Musk’s offer. However, there is nothing really specific yet. What is happening is the Board has put themselves directly in the gun sights of their shareholders. Rather then speak to them about this, they simply instituted their “Cunning Plan.”
This isn’t slowing down Musk all that much. To begin with, there is a shareholder’s vote scheduled for May and the shareholders can bypass the Board and take Musk’s offer. There is also the news that Elon Musk is also talking to other billionaires about joining him in taking over Twitter from the Communazi Totalitarian scum currently infesting the company. Here are the details from the Daily Wire:
Elon Musk, the world’s wealthiest man, is reportedly in talks with investors about joining his bid to purchase the social media platform Twitter.
A partnership could be announced in a matter of days, sources familiar with the matter told the New York Post. Musk initiated a bid to take over the social media giant earlier this week with an offer of $54.20 per share for all of Twitter’s shares, a bid worth more than $40 billion.
If Musk does bring in a few other investors, be they Rich people who also want Twitter to uphold the ideals of Free Speech, or a Private Equity firm, it puts more stress on the Board.
The report of Musk’s strategizing comes after the Twitter board inserted a “poison pill” in its bylaws to stave off Musk’s hostile takeover. The Twitter board passed a shareholder rights plan on Friday that would allow board members to purchase additional stock at a discount if a single entity purchases a total of at least 15% of Twitter’s stock. As The Daily Wire reported:
Twitter’s desperate gambit on Friday to stave off Elon Musk’s bid for a hostile takeover is technically known as a shareholder rights’ plan, but investors call it a “poison pill.” Here’s how it works, and what might happen next:
A poison pill allows other shareholders – but not the would-be buyer – to scoop up newly minted shares at a discount, boosting their investments while forcing the target to swallow “economic poison” by having his shares diluted. The move is an unmistakable signal that the board is not interested in the prospective hostile acquiror, despite a potential profit for shareholders. If the maneuver succeeds, shareholders are certain to flood the courts with lawsuits, accusing the directors of Twitter of breaching their fiduciary duties.
From what I’ve been reading, not all of the Board of Directors were on board with this poison pill plan. I am assuming that these votes are recorded, and that the ones who voted against the poison pill are probably not going to get slammed by the shareholders, especially if Musk sells his stake and the stock price craters. Obviously, I don’t know how these things work, but I suspect those that put this in place may be held personally liable. We shall see of course.
There are three possible outcomes now, none of which are ideal for Twitter’s current board: Musk could win by successfully initiating a proxy contest to remove the directors and nix the poison pill; Musk forces the company to find a “white knight,” or alternative buyer, potentially at a higher price, thus making his shares more valuable; Musk walks away and leaves the company and the board facing a pile of lawsuits as shareholders blame them for hurting the value of their stock.
Pretty much anyway you look at it, The Twitlers and progressives running Twitter are going to get it in the shorts. Assuming Elon Musk cashes out and walks away, at best, Twitter is going to stagger along for a few more years. The Board of Directors will be up to their eyeballs in legal stuff, and the precious snowflakes working at Twitter are going to start seeing layoffs.
The worst case scenario is the complete collapse of Twitter as a corporate entity, leading to either a Chapter 11 bankruptcy or a Chapter 7 liquidation. Of course, there is another worse case scenario, (From the point of view of the Twitlers). As the stock price collapses, Musk buys back in and quickly gains control of Twitter for a lot less money. At that point, if this scenario is the one that happens, Musk will put in a management team that is going to flush all the little twitlers right into the Pacific. Hmm, I seem to be out of popcorn.
***UPDATE***
Once again, events have overrun my ability to post. Elon Musk has secured the funding to buy Twitter and the board is now “Reconsidering” the offer. More on that in another post.
Thatisall
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