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Twitter “Poison Pills” Musk after buyout bid

April 15, 2022 Brooklyn Eagle Staff
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Twitter has announced that they will “poison pill” their marketshare, diluting the price of its stock if Elon Musk acquires more than 15 percent of the company. Thursday, Twitter had confirmed that it received a nonbinding $43 billion bid from Musk to purchase all outstanding available shares, after an initial announcement of 9 percent of the company on April 4.

According to a regulatory filing to the SEC on April 13th, the bid significantly overvalued Twitter stock: 38 percent premium over the closing price of Twitter on April 1, 2022, the trading day before Musk’s investment in Twitter was made public.

The filing adds a letter from Musk to Bret Taylor, Chair of the Board at Twitter, saying that the company, “will neither thrive nor serve this societal imperative in its current form,” and that Musk will “unlock” its “extraordinary potential.”

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