Twitter is going to allow Elon Musk to take over its company, that’s the strong message is sent to the pot-smoking billionaire by adopting an old tactic when corporate raiding was at large.
The poison pill mechanism is used to block a hostile takeover, the method is simple just the company as undesirable as possible. For instance, if Elon decides to purchase more shares in Twitter to make himself the sole largest shareholder then he can make the decision for the company, Twitter’s management to prevent this can flood the market with more stocks that only can be acquired by other shareholders at lower price leaving the Tesla owner needing to buy them at a higher price.
Elon’s high-profile bid for Twitter has gotten other billionaires talking and waiting to see how both regulator and Twitter will maneuver around this bid. Mark Cuban, billionaire, and panel judge in Shark Tank, think Twitter will do everything possible, not to sell the company, and that they will try to get a friendly to come in and buy Elon’s shares and get him out.
Even Elon had said he expects the deal to collapse, his US$43 billion offer to buy the platform and take it private is at a premium, but the larger shareholders still feel it’s a firesale and does not want to part with their shares at that price.
Possible outcome, Elon dumps his shares in Twitter and starts his own free speech platform, and takes it head-on!
