By Matt O'Brien
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 and take it private.
Twitter said the move, formally called a “limited duration shareholder rights plan," aims to enable its investors to “realize the full value of their investment” by reducing the likelihood that any one person can gain control of the company without either paying shareholders a premium or giving the board more time. Poison pills are often used to defend against hostile takeovers.
Twitter’s plan would take effect if Musk’s roughly 9% stake grows to 15% or more. Even then, Musk could still take over the company with a proxy fight by voting out the current directors. Twitter said the plan doesn’t prevent the board from engaging with parties or accepting an acquisition proposal if it’s in the company’s “best interests.”
Twitter had revealed in a securities filing Thursday that Musk offered to buy the company outright for more than $43 billion, saying the social media platform “needs to be transformed as a private company” in order to build trust with its users.
“I believe free speech is a societal imperative for a functioning democracy,” Musk said in the filing. “I now realize the company will neither thrive nor serve this societal imperative in its current form.”
Later on Thursday, during an onstage interview at the TED 2022 conference, he went even broader: “Having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization.”
Cheddar News checks in to see what to look for on The Day Ahead with Chinese EV-maker Nio due to release its report and Jurassic Park is celebrating the 30th anniversary of its release. Meanwhile, 'Transformers: Rise of the Beasts' debuts on Friday across the country.
Kelly Ann Winget, founder of private equity firm Alternative Wealth Partners and author of 'Pitch the Bitch,' a financial guide for those often left out of the male-dominated investment world, spoke to Cheddar News about her experience as an LGBTQ+ manager in the industry.
With wedding season underway, couples can get overwhelmed with finances and planning. Guests also feel stressed, especially when being invited to several weddings. Ted Rossman, senior industry analyst with Bankrate.com, joined Cheddar News to discuss setting up a budget if attending multiple ceremonies.
Tracking Consumer Spending Trends With Tanger Outlets CEO Stephen Yalof
Meta has introduced Whatsapp Channels, a feature aimed at making the app a "private broadcast messaging product."
Edward Moya, chief market strategist with Oanda, joined Cheddar News to discuss Thursday's gains as investors were surprised by a jump in weekly job claims and as Wall Street braces for key inflation data and the Fed's latest policy announcement.
Rebecca Walser, financial planner and wealth strategist, offers some tips on how to bring everyday spending in line with budgets by avoiding certain purchases.
The number of Americans applying for unemployment benefits last week rose to its highest level since October 2021, but the labor market remains one of the healthiest parts of the U.S. economy.
Stocks are drifting Thursday, continuing this week’s lull as Wall Street waits for several big events next week.
Apple's new iOS 17 has some promising upgrades in store for group chats. Previously, when a iMessage group chat contained an Android user, it would lose features such as text editing and threaded replies. Now group chats will retain those features, even when there is a "green bubble" in the mix.
