Elon Musk has posted a cryptic tweet that has been seen as a sign he could also be readying a brand new strategy to purchase Twitter.
The social media firm launched a so-called “poison tablet” transfer to make it tougher for Mr Musk or any group of traders to amass a controlling stake within the firm.
It got here after the world’s richest man filed a $43bn proposal to purchase Twitter and take it non-public. It was revealed final week that Mr Musk had constructed up a 9.1 per cent stake in Twitter and is the social media agency’s second-biggest shareholder.
On Sunday, Mr Musk stored traders guessing when he tweeted “Love Me Tender”, prompting a flurry of hypothesis on-line.
Some commentators have instructed the reference to the well-known Elvis Presley tune signifies that Mr Musk hopes to enchantment on to Twitter’s shareholders. Such a transfer may enable him to bypass Twitter’s board.
Mr Musk earlier tweeted a ballot asking customers whether or not they agreed with the assertion: “Taking Twitter non-public at $54.20 must be as much as shareholders, not the board”.
In separate feedback, the billionaire Tesla chief govt criticised Twitter’s board, claiming that its pursuits are not aligned with these of shareholders.
He was responding to a tweet which identified that the board “collectively owns nearly no shares” after the departure of founder Jack Dorsey.
Twitter’s share value was $45.08 earlier than markets opened on Monday, properly under Mr Musk’s provide of $54.20 per share.
There stay substantial obstacles to any acquisition, nonetheless. The social media platform’s board put in place a one-year “Rights Plan” on Friday, the day after it obtained “an unsolicited, non-binding” proposal from Mr Musk.
Underneath the plan, shareholders can be given a chance to purchase Twitter inventory at a reduced value, if Mr Musk will increase his holdings to greater than 15 per cent of the corporate.
That will water down Mr Musk’s stake, making a takeover tougher.
“The Rights Plan is meant to allow all shareholders to comprehend the total worth of their funding in Twitter,” the board stated in a press release,
“The Rights Plan will cut back the chance that any entity, individual or group positive aspects management of Twitter by way of open market accumulation with out paying all shareholders an acceptable management premium or with out offering the Board adequate time to make knowledgeable judgments and take actions which might be in the perfect pursuits of shareholders.”
Whereas Mr Musk’s shock strategy for Twitter has captured the eye of his large on-line following, traders have been alarmed by his obvious distraction from working Tesla. Shares within the electrical automotive firm have dropped 9.2 per cent in current days.