Elon Musk, who first bought a 9.2 percent stake in Twitter, then offered a total of 43.4 billion dollars to buy the entire platform. In a speech he gave in the past days, he said that he wanted to make the platform a more free and private company by buying Twitter.
After the Board of Directors did not take kindly to the purchase offer, Elon Musk announced in a speech that he had a Plan B. Twitter Board of Directors held a meeting yesterday and made a statement on this issue. Let’s take a look at the details of the news together.
Cold shower to Elon Musk: Twitter’s largest shareholder lost his title!
Vanguard Group increased its stake in Twitter to 10.3 percent. With this development, Elon Musk lost the title of largest shareholder.
The Board of Directors will use the poison pill strategy for Twitter!
The Board of Directors doesn’t want to sell the company entirely for the future of Twitter. Elon Musk conducted a survey yesterday, from his account, whether the purchase is of interest to the shareholders or the Twitter Board. 2.7 million users took part in the Twitter survey. 84 percent of users voted by shareholders.
After these actions of Elon Musk, it was said that the Twitter Board of Directors would use a poison pill strategy. After its meeting yesterday, the Board of Directors definitively announced that it will implement a poison pill strategy so that Elon Musk does not buy Twitter.
The poison pill strategy is used by large companies that want to curb bulk purchases. Two ways are used in this system; Shareholders put some of their shares on sale or the parent company fills the market with new shares. In this way, the person who wants to buy in bulk cannot keep up with all the shares in the market. In addition, as the stocks rise, the purchase becomes more difficult.
It is a matter of curiosity what Elon Musk will do in the face of the poison pill strategy. Although he did not explain what his plan B was in his speech, he is among those who are expected to threaten to sell his shares.
What do you, our readers, think about this issue? Who do you think will win the Twitter battle? You can express your thoughts in the comments section or on the SDN Forum.