FILE (Photo by Rafael Henrique / SOPA Images/Sipa USA)
PROVIDENCE, R.I. (AP) — Twitter said Friday that its board of directors has unanimously adopted a “poison pill” defense in response to Tesla CEO Elon Musk’s proposal to buy the company for more than $43 billion and take it private.
The move would allow existing Twitter shareholders — except for Musk — to buy additional shares at a discount, thereby diluting Musk’s stake in the company and making it harder for him to corral a majority of shareholder votes in favor of the acquisition. Twitter’s plan would take effect if Musk’s roughly 9% stake grows to 15% or more.
Meanwhile, former CEO Jack Dorsey labeled the board as “consistently the dysfunction of the company” and said he agreed with the idea that a badly run board “can literally make a billion dollars in value disappear,” a statement made by the venture capitalist Garry Tan.
it’s consistently been the dysfunction of the company
— jack (@jack) April 17, 2022
When another Twitter user asked Dorsey if he was allowed to be speak publicly like this, Dorsey had a clear response. “No,” he said.
—Copyright 2022 Red Apple Media. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed. AP contributed to this report.
