Finally, Elon musk is buying Twitter?
This month, Elon Musk surprised the world by becoming the largest shareholder of Twitter. This became viral news. Every news portal started discussing the micro-blogging site's future. Then there came news that Twitter has proposed the “Poison Pill” against Elon’s offer.
What is Poison Pill?
As per Investopedia, The poison pill refers to a defense strategy used by a target firm to prevent or discourage a potential hostile takeover by an acquiring company. Potential targets use this tactic in order to make them look less attractive to the potential acquirer.
If the “Poison pill” is implemented, then It would be nearly impossible for Elon Musk to take total control of the company without having to spend significantly more than what he had originally planned.
The “poison pill” was invented 40 years ago by business lawyer Martin Lipton to counteract hostile takeovers on Wall Street. This practice was declared legal for the first time in 1985 by the Delaware Supreme Court.
While these things were going on, Elon Musk offered to buy Twitter for $43 billion. This will be $54.20 per share in cash. Musk said while offering, “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder.”
The statement clearly indicates that In any circumstances, Elon Musk doesn’t want to back off from buying Twitter.
Today, news came, that Twitter’s board is negotiating with Elon Musk and a deal could be announced as early as Monday. This gives an indication that Elon Musk will be buying Twitter as he has already lined up $46.5 billion.
We have to wait at least till Monday to see what negotiation they do, and what will be the final deal.
Edited:
While I was writing this article. It is already confirmed that Elon Musk bought Twitter for $44 billion.
Elon’s tweet on Twitter’s free speech.
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