May 17, 2022

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Twitter plans to block the acquisition of Tesla CEO Elon Musk

Twitter plans to block the acquisition of Tesla CEO Elon Musk

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Twitter has been trying to prevent Tesla chairman Elon Musk from acquiring it, and has taken steps to counter the trend since Friday and prevent the world’s richest man from buying all of its shares easily. To achieve this goal, the company will sell its shares in the presence of all other shareholders, announcing a plan that will allow it to buy additional shares in a practice known as the “poison pill” in the financial sector, and if it exceeds Muskin’s share of 15 percent on Twitter, it will be implemented without the approval of the board of directors.

Twitter plans to avoid Tesla boss trap Elon Musk He announced his intention to acquire the move on Friday, as he took steps to counter the trend and prevent the world’s richest man from easily buying all its shares.

The company is seeking to sell its shares to all other shareholders, and has announced a plan to allow shareholders to purchase additional shares, known as the “poison pill” in the financial sector. If Muskin’s contribution on Twitter is more than 15 percent, the process will begin without the approval of the board of directors. Earlier this month, Musk bought a 9.2 percent stake in the company.

Dangerous project

If the millionaire buys enough shares to reach 15 percent, all other shareholders will have the opportunity to buy them at a discount, which will significantly increase the price the entrepreneur has to pay to buy the site.

In the context, the company said in a statement, “By accumulating shares purchased in the market without paying the proper regulatory premium to all shareholders, any company, individual or group will be less likely to take control of Twitter. It’s time for the board of directors to take action. “Emotional Decisions.

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Woodbush’s Dan Ives noted that “this defensive plan was expected,” but he expected shareholders not to see it as “comfortable” because it would be “downgraded” (i.e., lower stocks due to the new stock issue). “The plan will definitely face an appeal in court,” he said because the board of directors is obliged to work for the company and increase its value for the benefit of shareholders.

“Site for Freedom of Expression”

On Wednesday, Musk offered to buy the entire company for $ 43.3 billion, while the company was valued at $ 36 billion. On Thursday, Musk said in an interview at the TED2022 conference that he had “the necessary funds” to buy Twitter, insisting that he had an alternative plan if the company’s board rejected his offer. He pointed out that he was not trying to “make money”. Musk did not provide details of the financing of his offer, but he would inevitably have to borrow from one of his companies, “Tesla” or “SpaceX”, or give up part of his stake in them.

Elon Musk is very active on Twitter because he publishes almost daily tweets to his 81.3 million followers, but he also criticizes the site for overseeing the content, and confirms that he wants to make Twitter a “platform for freedom” and imposes fewer restrictions on users’ tweets.

The millionaire offered to join the company’s board of directors after he bought about 73.5 million shares of Twitter’s common stock last week, but he did not want to do so. Since announcing the purchase of shares in the network, Musk has not stopped provoking. For example, he wondered if the social network was on the verge of “dying” because it had many accounts with millions of followers, but they did not work.

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Want to buy Elon Musk Twitter?

On Friday, Musk said, “Thanks for the support!” And in a poll conducted by the “Bitcoin Archive” with his tweet “Do you want to buy Elon Musk Twitter?” And with 19,944 participants, 73 percent of voters answered “yes.”

Commenting on the poll, Musk asked his followers about their support for the idea that “privatizing Twitter by buying it for $ 54.20 per share should be a matter for shareholders, not a board of directors.” More than 83 percent of the 2.9 million users who took part in the poll supported the idea. “I think it’s very painful, I do not know about buying it,” Musk said on Thursday, before expressing confidence in getting as much current share support for his project as possible.

Saudi Prince Al-Waleed bin Talal, a Twitter contributor, commented that Musk’s offer did not match “Twitter’s true value”. Analysts at Wetbush Securities, which is looking forward to the millionaire’s success after a series of setbacks, believe that Elon Musk’s impact and pressure has not left Twitter managers with a great deal of freedom.

In an analytical article published in the Daily Mail on Thursday, Dan Yves said, “The board of directors did not like Musk because its members disagreed with him on almost everything, and his style did not fit into the culture of the company.” It will be difficult for other investors to emerge, “he added.

France 24 / AFP