Over the last few weeks, we’ve been watching as billionaire Elon Musk fights to make Twitter a free speech platform. He offered to buy 100% of the stock for 20% more than it was worth—at $43 billion. In return, he would privatize the company and have total control. His goal was to end Twitter’s far-left censorship of conservatives and make it a haven of free speech.
But the leftists on Twitter’s board (who do not even use the social network), conspired to block Musk’s purchase. They enacted a “poison pill” rule that would dramatically lower the value of Twitter shares and force Musk to buy up many more than planned—forcing him to pay more. This ugly move was done at the expense of current shareholders, who would have made a mint if Musk bought them out.
Now, the state of Florida is getting involved, for a surprising reason.
Florida Governor Ron DeSantis signaled Tuesday that Florida will take action against Twitter’s board of directors for “breaching their fiduciary duty” by trying to stop Elon Musk’s $43 billion hostile takeover bid.
DeSantis, speaking at a news conference, noted that the state’s pension system holds shares of Twitter…
“I mean, most people and their investment vehicles are not making 20% in a year,” DeSantis said. “They rejected it because they know they can’t control Elon Musk.”
He added, “They know that he will not accept the narrative and that their little play toy of Twitter, it would not be used to enforce orthodoxy, and to basically prop up the regime and these failed legacy media outlets.” [Source: Daily Wire]
Well, this is an interesting move. Apparently the state of Florida owns shares of Twitter as part of their pension system. Had Musk bought 100% of Twitter’s stock, Florida state pensions would have jumped in value. They would have seen a 20% ROI just in those stocks alone. That would have made state employees very happy.
Yet Twitter’s board sabotaged them and every other shareholder by pushing their poison pill. Gov. DeSantis appears to be exploring action against Twitter’s board, saying they care more about their leftist agenda than the good of shareholders.
Florida does have grounds to sue. The state could even encourage other Twitter shareholders to join a case against the board. They might force the board out, elect a new board, and allow Musk’s purchase to go through.
Plenty has to happen before that, of course. But it seems the governor is exploring all his options.
It’s clear that the board will regret tanking the value of their own company, just to prevent free speech from reigning on their website.
Author: Mac Davis