Sarah Tew/CNET
Musk said in a TED Talk on Thursday that he has a “Plan B” if Twitter rejects his offer, but he hasn’t revealed what it is.
Musk, who leads Tesla and SpaceX, said in a filing with the US Securities and Exchange Commission that he wants to buy Twitter to safeguard free speech. The First Amendment, though, applies to government censoring speech, and companies like Twitter are allowed to make rules about what can be posted on their services.
It doesn’t prevent the board from accepting an acquisition proposal or engaging with other parties if the board thinks it’s in the best interest of the shareholders, Twitter said.
Twitter is fighting Elon Musk’s attempt to take over the company.
The expected move marks Twitter’s first step in fighting Musk’s offer to buy the company for .20 per share, a proposal that was made public on Thursday. His offer values Twitter at more that billion. He already owns more than 9% of the company.
“The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders,” Twitter said in a press release.
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Elon Musk wants to buy Twitter.
If Musk acquires more than a 15% stake, then shareholders other than him will be able to buy more shares at a discounted price. That makes it more expensive for Musk to increase his stake in the company. Purchasing shares also comes with voting rights. Musk has been calling for a shareholder vote on his offer, and Twitter’s poison pill defense also makes it tougher for him to get enough votes in favor of the acquisition.
Twitter said the rights plan, which expires on April 14, 2023, will come into play “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.”
On Friday, Musk didn’t address the poison pill directly on Twitter, but he retweeted a poll showing support for his possible purchase of Twitter. He added, “Thanks for the support!” He didn’t answer questions on Twitter about the social media site’s latest move.
