Twitter has launched an investor policy that could prevent Dogecoin (DOGE) advocate and Tesla leader Elon Musk from taking control of the company.
Twitter creates “Poison Pill” plan
On Friday, Twitter’s board approved a plan that would allow shareholders to buy their shares at a discount, thereby diluting the value of holdings bought by newer investors like Musk. Media outlets called the plan a “poison pill,” but Twitter called it a limited-time shareholder rights plan. The plan will “reduce the likelihood of [anyone] taking control of Twitter” without paying a controlling bonus or obtaining board approval.
Effective if a single shareholder acquires ownership of more than 15 percent of Twitter’s extraordinary common stock. The plan does not prevent Twitter’s board from dealing with purchase offers, if it sees fit. Twitter didn’t name Musk in its statement, but did mention an “unwelcome, non-binding offer to buy Twitter” that could only come from Musk given the events of this week.
Dogecoin advocate Musk seeks reform on Twitter
As we reported on Kriptokoin.com, on Monday, Musk bought 9.2 percent stake in Twitter and became its largest shareholder. It was initially revealed that Musk would join Twitter’s board of directors, but it was later revealed that he gave up on his plan to join. Days later, Musk offered to buy Twitter for $43 billion at $54.20 per share. Musk voiced his goal of changing Twitter’s business model, reshaping its policies around freedom of expression, and getting the company to accept cryptocurrencies like Dogecoin (DOGE).
The potential buyout got a lot of backlash due to Musk’s wealth. Dogecoin founder Jackson Palmer stated that those who believe the era will increase freedom on the platform should do “pretty impressive mental gymnastics.” However, there has also been support for Musk in the cryptocurrency industry. Sam Bankman-Fried of FTX said he would be “excited” to help with Twitter and Blockchain. Justin Sun, the former CEO of TRON, also said that he “fully supports Elon Musk’s reform initiatives.”
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