Elon Musk is attempting to buy Twitter, as we all know. Given the drastic lengths they’ve taken to reject the offer, including activating the “poison pill,” I believe we’re all skeptical that it will truly happen.
The main point of the action is to keep Musk from assuming control of the corporation.
This is what Twitter is doing: if any individual or group buys 15% or more of the firm in the next year — whether Musk, Vanguard, or an unexpected competitor — it will trigger an option allowing shareholders to buy new, discounted shares, diminishing the hostile party’s ownership.
According to SEC filings, Twitter’s poison pill has an exercise price of $210, allowing each shareholder to pay $210 to acquire stock “having a then-current market value of twice the exercise price.” As Bloomberg finance expert Matt Levine points out, that’s equal to $420.
It’s such an idiotic move by Twitter that was even criticized by the founder himself.
But here’s the thing, Musk has a Plan B.
During the TED2022 event last week, he stated that he has another plan in case this one doesn’t work. I think whatever his plan is, he’s going to do well with it and what will likely happen is that it will become more appealing than Twitter because this guy is a business man who is absolutely brilliant. He sees the flaws in Twitter and knows how to improve upon them.
So, the thought is that he’s going to create a competitor, and one of the rumors is that it will be a decentralized Twitter-like platform that is built alongside the founder of Cardano, Charles Hoskinson. Hoskinson recently told Musk that he would help him if his Twitter takeover fails.
This is exactly what we need to happen though. Thank God for Elon Musk. Honestly, though, we have one man in the world who is willing and able to shake up the world like this right now. We need Elon.