Tesla CEO Elon Musk said that if Twitter’s board does not accept the terms of his buyout offer, there is a “Plan B.”
During Musk’s appearance at TED 2022, the Tesla CEO, who is also Twitter’s largest shareholder, was grilled about his proposal to buy the social media platform at $54.20 per share on Thursday morning.
While Musk detailed his request to buy Twitter was driven by the need for an “inclusive arena for free speech.”
Elon Musk says Twitter buyout inspired by need for ‘inclusive arena for free speech’
Musk has openly criticized and questioned Twitter’s ability to support free speech, a constitutional right in the United States. Musk polled his millions of Twitter followers in early April, asking if the platform adhered to the right to free speech. Over 70 percent of participants said no.
During Head of TED Chris Anderson’s interview with Musk, he asked the CEO what would happen if the Twitter board did not approve the sale. “Is there a Plan B?”
“There is,” Musk added. However, he did not detail any additional plans if Twitter did deny the offer.
The Wall Street Journal reported Twitter could use a “poison pill” to limit Musk’s stake in the company. It would allow shareholders to purchase more shares at a steep discount, making the likelihood of a hostile takeover decrease.
This has been used on several occasions, including with Papa John’s and Netflix. The pizza chain used on in June 2018, preventing ousted founder John Schnatter from gaining control of the company. Netflix performed the strategy in 2012 after investor Carl Icahn acquired a 10% stake in the streaming platform.
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