Earlier this week, Elon Musk shook the social media world when the Tesla CEO came forward with a $41 billion offer to buy Twitter with the business magnate previously purchasing a 9% stake in the popular social media platform. The statement, however, contained an ulterior attempt to strong-arm Twitter into accepting the deal, adding that a rejection of the lucrative offer would cause Musk to reconsider his previous investment made just days before. Now, Twitter has announced a new plan to fight the takeover with a discount plan being offered to shareholders in an attempt to block the purchase.
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The “shareholders rights plan” announced by Twitter’s board of directors will allow specific shareholders within the company to purchase more stock in Twitter at a discounted rate. The tactic is commonly referred to as a “poison pill” plan and is often used as a tool by companies looking to block a hostile takeover by an outside buyer. Twitter’s board of directors was reportedly still considering Musk’s offer, however, the newly announced plan would imply that the group is looking for methods to avoid Musk becoming the platform’s new owner.
Elon Musk’s attempt to purchase Twitter as a whole comes with plans for sweeping changes to the platform under his ownership. When revealing that he had made an offer for the website, Musk praised Twitter as a platform that can provide an outlet for free speech across a wide variety of ideas and viewpoints while feeling that Twitter’s current ownership was keeping the platform from reaching its potential. Musk’s offer would pay just over $54 per share in cash, a valuation that stands significantly higher than the current public price for Twitter stocks.
The Twitter purchase is just the most recent in Musk’s entrepreneurial adventures to expand his own personal business empire. Musk made an appearance on the hit comedy show Saturday Night Live last year and has expressed interest in getting more involved in the gaming industry. Reportedly, he wants to bring Steam to Tesla vehicles as well as the recent Tesla Arcade allowing gamers to play games like Cyberpunk 2077 and The Witcher 3 within the vehicle. Only time will tell whether Elon Musk’s attempted purchase of Twitter will go through, but the social media platform would mark another expansion of his widespread influence.
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Source: IGN
