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‘I love Twitter. How much is it?’: Elon Musk throwback to 2017

Rapid developments have taken place since Elon Musk offered to buy Twitter for $43 billion. The latest is Twitter's 'poison pill' strategy to thwart him.

April 17, 2022 / 10:40 AM IST
Elon Musk has offered to buy Twitter for $43 billion.

Elon Musk has offered to buy Twitter for $43 billion.


Billionaire Elon Musk is facing roadblocks in his bid to take over Twitter. The company has adopted a “poison pill” strategy to thwart him, and Musk himself has expressed apprehensions about the bid’s success.

Amid the rapidly-evolving situation, the Tesla boss revisited a tweet of his from 2017, enquiring about the price of the microblogging platform.

“I love Twitter," Elon Musk had tweeted. In response, Business Insider editor Dave Smith said: "You should buy it then."

That prompted Musk to ask: "How much is it?" . Twitter users chimed in with their estimates.

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Yesterday, Musk went back to that tweet to leave an inverted smile emoji there. The emoticon is used to express a range of emotions -- frustrated resignation, passive aggression, irony and sarcasm.

 

Musk, who often sets Twitter abuzz with his posts, had revealed earlier this week that he had offered to buy Twitter for $54.20 per share in cash ($43 billion in total). He said that Twitter had the potential to be a platform for free speech, a potential that he would unlock. 

The billionaire made the offer a over a week after disclosing that he had purchased 73.5 million shares -- or 9.2 percent -- of Twitter's common stock.

After Musk's announcement, Twitter's board met to review whether his offer was in the company and its shareholders' best interest, according to a Bloomberg report. 

Then, it adopted the poison pill defence strategy. The plan allows shareholders to buy extra shares at discount, which makes a buyout expensive. 

“The whole point of it is to make the offer from the board more attractive than the acquirer,” Carliss Chatman, an associate professor of law at Washington and Lee University, told the New York Times

Poison pill defence gives a company's board leverage as well as more time to analyse an offer. 

 

Moneycontrol News
first published: Apr 17, 2022 10:39 am
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