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On Friday, Twitter announced that the Board adopted the Rights Plan valid until April 14, 2023, to stop the “unsolicited, non-binding proposal” Elon Musk made to acquire the company.
The explanation Twitter’s Board made is that the Rights Plan is intended to “enable all shareholders to realize the full value of their investment” and prevent “any entity, person or group” from gaining complete control of the company.
“The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders,” the statement reads.
Musk warned yesterday that if the Board decided to act “contrary to shareholder interests, they would be breaching their fiduciary duty.” Discussing potential liability for the Board, Musk said that it would be “titanic in scale.”
“Twitter is considering a poison pill to thwart Elon Musk’s offer,” Cameron Winklevoss correctly predicted an adoption of a “poison pill” yesterday. “They would rather self-immolate than give up their censorship programs. This shows you how deeply committed they are to Orwellian control of the narratives and global discourse. Scary,” he added.
Elon Musk is expected to respond to the Board’s move to prevent him from buying more company shares for $43 billion.
“I believe free speech is a societal imperative for a functioning democracy,” Musk said in the SEC filing. “I now realize the company will neither thrive nor serve this societal imperative in its current form.”
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