While it remains a debatable topic, the truth is humans do enjoy free will to a larger degree. In fact, this liberty to decide and do anything is actually what gives us all the experience, therefore fuelling our growth over time. However, as empowering as it sounds, humans haven’t always used the said liberty for a good purpose. Such a dynamic encourages you to take some protective measures along the way, and our biggest one would come in the shape of a regulatory structure. With dedicated regulatory bodies running the show, the whole spectrum suddenly looked a lot more organized than ever before. Nevertheless, the tremors were felt once again when technology took over the landscape. For a good deal of time, nobody had any idea about how to govern this ingenious but overly layered creation. The said reality would end up causing ramifications that were beyond serious, but it’s not to happen anymore, as recent events promise a better regulated tech sphere moving forward. The same is pretty evident within Twitter’s latest decision.
Twitter’s board of directors has officially turned to the Shareholders Rights Plan for blocking Elon Musk’s proposed takeover of the company. Also known as Poison bill, the measure is pretty much designed to stop hostile takeovers by giving existing shareholders a chance to buy more stock at a lower rate. According to certain reports, the provision will automatically go into effect, if Musk tries to buy more than 15% of stake, which is the final limit for any investor, and it will be valid for one year, at the very least. The response from Twitter comes after Musk offered it around $41.4 billion to buy all the shares that he doesn’t own already. This translates to a per share value of $54.20.
“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,” the company said.
Notably enough, the bill doesn’t entirely rule out Musk taking over Twitter, as official negotiations can still be pursued. However, considering Twitter’s stature in today’s market, that route can get a lot more expensive than what he was willing to fork out. In his response to the poison bill, Musk stated how it “would be utterly indefensible not to put this offer to a shareholder vote.”
While the popular billionaire hasn’t talked about his plans in relation to Twitter, there is a sense of belief that, if the acquisition goes through, he’ll kick things of by loosening up the platform’s moderation policy.