They Are Missing a Poison

In response to Elon Musk's announced hostile takeover bid, the Twitter board of directors have adopted a poison pill strategy, where they would sell large numbers discounted shares to current shareholders should anyone purchase more than 15% of the company.

It's a fairly typical tactic, but I think that Twitter should do something else, in fact, I would argue that Twitter has a fiduciary responsibility to suspend the account of any person attempting a hostile takeover, because otherwise their own infrastructure might be used to misinform shareholders.

So shut down Elon "Apartheid Emerald Mine Heir" Musk's Twitter account, at least until he ends his attempt to take over the company.

Given that Musk has already used Twitter in an unlawful manner to manipulate stocks, so says the SEC, I think that the situation demands this, otherwise, before you know it, the Bond Villain wannabee is going to be restoring Donald Trump's twitter account in the next few months:

Twitter does not want to become a plaything of the world’s richest person.

So on Friday, it turned to a tried-and-tested corporate defense mechanism invented in the 1980s — the heyday of the corporate raider — to block a potential takeover attempt by Elon Musk and buy its board some time.

The mechanism, known as a poison pill, has a simple intention: to make it less palatable for a potential buyer to pursue the target company if the buyer accumulates shares above a certain threshold. In Twitter’s case, if Mr. Musk bought more than 15 percent of the company, Twitter would flood the market with new stock that all shareholders except Mr. Musk could buy at a discounted price.

That would immediately dilute Mr. Musk’s stake and make it significantly more expensive for him to buy the company. Mr. Musk currently owns a little more than 9 percent of Twitter’s stock.

Twitter said its plan would be in place for just shy of one year. The tool will not stop the company from holding talks with any potential buyer, and will give it more time to negotiate a deal that Twitter’s board believes best reflects the company’s value.

Seeing as how Elon Musk would destroy Twitter faster than Rupert Murdoch destroyed MySpace, any management input from him would likely destroy the company's value over the long term.