We’ve been covering the continuing drama of Elon Musk’s effort to buy Twitter. Where we last left you in the saga was that the Twitter board announced that it was going to adopt a “poison pill” defense – a move trying to prevent him from acquiring more than 15 percent of the company. It’s designed to make the acquisition less attractive.
Now, the problem with this move is that it’s denying the shareholders the gain they would have made from the sale, so is detrimental to their interests. Musk had offered to buy shares for more than current prices. By not accepting the deal, the board might be open to lawsuits.
But if you’ll recall, we reported how Musk said he had a “Plan B” if the Twitter board decided they didn’t want to make the sale to him. While he didn’t outline what that plan might be, it might already be going into effect.
Musk appears to be not afraid of taking the poison pill, or the coincidence story that SEC/DOJ may be investigating him. This story is likely meant to scare him. According to new reports, it seems like Musk may be all in. According to sources close to the situation, Elon wants investors to join him in buying Twitter. The sources say that Elon will soon announce a new partnership plan. Silver Lake Partners is a private equity company that could be one of these potential partners. A Musk spokesperson wouldn’t confirm it, but they likely wouldn’t until they had it all worked out and everything in place to go.
Musk may be restricted by the poison pill but, if he was accompanied with others, he might circumvent it.
This pill does not necessarily stop people, entities, or other individuals from buying shares in up to 15%. These owners may partner with Musk in order to forcibly sell the company, change the leadership ranks or force other changes.
Twitter hasn’t yet filed its shareholder rights plan with the SEC, though it announced the poison pill in a statement. Further details will follow in the SEC filing on whether or not it prohibits investors with similar interests from buying more than 15%.
“This is not over,” a source close to the situation said.
Thoma Private Equity may be making a bid to acquire Twitter.
So, we’ll have to see how it rolls out. But Musk has made clear that he’s not going to be easily put off, and he’s serious in his effort. It seems that this report proves it. Now, we’re going to see how serious they are about blocking him out or going after him to stop him.
But I have to say, it’s a courageous move on his part, knowing all the guns that are going to be leveled against him. So, props to him for sticking to his guns for free speech — that says a lot about him.