Free speech is clearly a problem for the likes of those who sit on the board of the internet media giant, Twitter. This week in a clear attempt to make serious changes at the leftist leaning company, Elon Musk, the world’s richest man and a declared free speech absolutist, made a play to buy controlling shares of the company.
In an interview on TED, Musk explained that it’s not about the money or economics but rather the fact that unidentifiable changes are made to speech there without regard for what is said. Basically, he was describing the present level of censorship used for that which is posted. Musk essentially wants speech on Twitter to be free noting that someone should be able to say something that you absolutely disagree with and still be able to post. What a novel concept.
Apparently, the idea of free speech sent regime elites into a frenzy. In response to Elon Musk’s buy out attempt, Twitter’s board of directors voted among themselves to deploy defensive measures to prevent any person or group from gaining control of Twitter though an open market purchase .
Essentially, the leftist-run, pro-censorship, social media platform has adopted a Shareholder Rights Plan, that is a corporate tactic used to reduce the ability of any takeover by opposing parties in a buyout. The plan is known as a “poison pill,” because it allows existing shareholders to buy more shares at a discounted price, effectively diluting the stake of any shareholder seeking to acquire the whole company. It also in theory raises the costs of doing so.
In a press release on Friday Twitter stated that –
“Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter's outstanding common stock in a transaction not approved by the Board. In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.”
The limited duration Rights Plan, will be “in effect until May 14th of 2023”. As stated above, it will be triggered if Musk’s share grows to 15 percent or more. Further, the Rights Plan intent is to enable all shareholders to realize the full value of their investment in Twitter, reducing the likelihood that any entity, person or group gains control of Twitter on the open market without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments, taking actions that are in the best interests of shareholders.
On the other hand, the plan allows the board to engage or approve of acquisition by parties that the Board believes that it is in the best interests of Twitter and its shareholders. Apparently, if they don’t approve of you – forget it! The socialist club is apparently not accepting of free thinkers at any price.
While the Rights Plan raises the cost of any takeover attempt, it still relies on existing shareholders’ desire to buy shares at a rate that prevents Musk or any other party from acquiring a large enough number of shares to take over the company. Also, since most of Twitter’s top shareholders are giant investment companies that manage trillions of dollars of assets, their resources considerably exceed that of any one individual, even Musk, the richest man in the world. This is a basic Chess move, now it’s Musk’s turn.
Truly the thought of a free speech absolutist taking over Twitter has the left in a complete meltdown. In addition to the frantic posts from leftist members of social media, there are reports of panic from the woke employees inside Twitter itself.
Also, according to Fox Business News, there have even been statements made from former Securities and Exchange Commission Chairman Harvey Pitt warning of a possible effort by the government or Congress to prevent Elon Musk from purchasing Twitter, adding that the Biden administration “is pretty much guaranteed to oppose” Musk’s bid to buy the social media company. This is leftists running petrified at the thought!
It will be interesting to see Musk’s next move.