TWITTER GOES HOSTILE | Elon Musk and Understanding the ”Poison Pill” (VL660)

Elon Musk has put his money where his mouth is, purchasing a substantial portion of Twitter's outstanding stock and bidding to purchase the rest.

But it's clear Twitter's board is hostile to his intentions, as it swallows a poison pill to try to keep the tech titan at bay.

But what is a "poison pill"? How can the board block open market action? And why did things just get a lot more likely to go to litigation?

The Twitter Board better hope it got that dosage right...in Virtual Legality.

CHECK OUT THE VIDEO AT: https://youtu.be/76rZheRpnJ4

#ElonMusk #Twitter #PoisonPill

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Discussed in this episode:

PLAYLIST
https://www.youtube.com/playlist?list=PL1zDCgJzZUy_O52bErVCYZfVYMgVgu3nX

THE RIGHTS PLAN ANNOUNCEMENT
https://www.prnewswire.com/news-releases/twitter-adopts-limited-duration-shareholder-rights-plan-enabling-all-shareholders-to-realize-full-value-of-company-301526627.html

LAW AND LEGAL ANALYSIS
https://www.jstor.org/stable/40687130?mag=why-companies-swallow-poison-pills&seq=1
https://en.wikipedia.org/wiki/Unocal_Corp._v._Mesa_Petroleum_Co.
https://law.justia.com/cases/delaware/supreme-court/1985/493-a-2d-946-9.html

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"Virtual Legality" is a continuing series discussing the law, video games, software, and everything digital, hosted by Richard Hoeg, of the Hoeg Law Business Law Firm (Hoeg Law).

CHECK OUT THE REST OF VIRTUAL LEGALITY HERE:
https://www.youtube.com/playlist?list=PL1zDCgJzZUy9YAU61GoW-00K0TJOGnPCo

DISCUSSION IS PROVIDED FOR INFORMATIONAL PURPOSES ONLY AND IS NOT TO BE CONSTRUED AS LEGAL ADVICE. INDIVIDUALS INTERESTED IN THE LEGAL TOPICS DISCUSSED IN THIS VIDEO SHOULD CONSULT WITH THEIR OWN COUNSEL.

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Twitter: @hoeglaw
Web: hoeglaw.com