“Twitter’s board of directors gathered this week to sign what sounds like a suicide pact,” attorney Jonathan Turley wrote at the Hill in an article appropriately titled “Twitter faces the ‘nightmare’ of being forced into free speech. “It unanimously voted to swallow a ‘poison pill’ to tank the value of the social media giant’s shares, rather than allow billionaire Elon Musk to buy the company…”
The board would rather collapse Twitter than let Elon Musk purchase it. This behavior exemplifies a toddler who would rather break a toy than to let a sibling have it.
This is also evidence that the Twitter board is not made up of capitalists as they are not operating as a traditional “for profit” business, but rather as a mean-to-an-end platform.
Turley explained: “Company boards have a fiduciary duty to do what is best for shareholders, which usually is measured in share values. Twitter has long done the opposite. It has virtually written off many conservatives — and a large portion of its prospective market — with years of arbitrary censorship of dissenting views on everything from gender identity to global warming, election fraud and the pandemic.”
Now the Wall Street Journal reports:
“In a securities filing, Mr. Musk also said that given the lack of a response from Twitter’s board, he is now exploring a tender offer to acquire shares of Twitter directly from shareholders, though he said he hasn’t decided whether to do so.”
“Mr. Musk made a non-binding $43 billion bid for Twitter on April 14.”
Musk owns 73,486,938 shares of Twitter, which represents a 9.2% passive stake in the company, according to the Securities and Exchange Commission 13G filing released Monday. Twitter shares closed up 27% after Elon Musk takes 9% stake in social media company, CNBC reported.
Musk has challenged Twitter’s censorship of certain political thought and free speech of mostly conservatives. “Given that Twitter serves as the de facto public town square, failing to adhere to free speech principles fundamentally undermines democracy. What should be done?” Musk Tweeted in March when he was clearly contemplating his next move:
Buy it and fire the communists who run it right now. You can save free speech. In Congress we must make platform access a right so no one can ever be removed from the public square over unpopular speech!
— Robby Starbuck (@robbystarbuck) March 27, 2022
Congressional candidate Robby Starbuck’s reply countered what Twitter has become: “Buy it and fire the communists who run it right now. You can save free speech. In Congress we must make platform access a right so no one can ever be removed from the public square over unpopular speech!”
As Turley accurately notes, “selling censorship is not a big hit with most consumers, particularly from a communications or social media company.”
“Musk is right that the company’s potential has been constrained by its woke management,” Turley continued. “For social media companies, free speech is not only ethically but economically beneficial — because the censorship model only works if you have an effective monopoly in which customers have no other choice.”
Censorship is not enhancing Twitter’s value, and instead has become a sizable platform for its executive’s virtue signaling. Turley calls this “self-defeating values.”
Most investors make decisions to grow their money, get a return on their investment on something they believe will be successful first and foremost.
Underestimating Elon Musk is a fools errand.
In May 2019 the Tesla CEO threatened to move both the company headquarters and production facilities to Texas or Nevada if they were not allowed to reopen despite COVID lockdown orders, the Globe reported.
Then Musk took to Twitter and announced he would sue Alameda County: “The unelected & ignorant ‘Interim Health Officer’ of Alameda is acting contrary to the Governor, the President, our Constitutional freedoms & just plain common sense!” Musk Tweeted.
Frankly, this is the final straw. Tesla will now move its HQ and future programs to Texas/Nevada immediately. If we even retain Fremont manufacturing activity at all, it will be dependen on how Tesla is treated in the future. Tesla is the last carmaker left in CA.
— Elon Musk (@elonmusk) May 9, 2020
The billionaire CEO, who employs 10,000 at his Alameda plant, said Tesla would relocate its headquarters and future programs out-of-state.
California’s potty mouth Assemblywoman Lorena Gonzalez showed her love for Musk and his announcement on Twitter:
The Tweet is no longer accessible on Gonzalez’s Twitter account.
“Tesla is the last car company still manufacturing cars in California. SpaceX is the last aerospace company still doing significant manufacturing in California,” Musk said, acknowledging he still has manufacturing in California.
But, in Dec. 2020, Musk confirmed he personally moved to Texas – a state doesn’t collect state income or capital-gains tax for individuals – and started building a new Tesla factory. “He lamented that California, in his view, had become complacent with its innovators,” the WSJ reported.
It appears Musk is just getting started on Twitter… maybe he’ll move Twitter HQ from San Francisco to Texas.
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