Florida Gov. Ron DeSantis dove into the controversy surrounding Elon Musk’s Twitter buyout saga on Tuesday and said that Florida would hold it’s board of director’s accountable for breaching their fiduciary duties after the board made the decision to use the infamous “poison pill” tactic to stop Musk’s takeover attempt.
DeSantis was speaking at The Villages in Florida DeSantis made the remarks at a press conference in The Villages, Florida, in the context of a discussion on a higher education reform bill that he signed into law on Tuesday.
Twitter’s board initially responded to Musk’s buyout offer by saying it would “carefully review” the proposal and take action that it believes is in the best interest of the company and its shareholders.
The board adopted it’s “poison pill” tactic recently and essentially announced it’s opposition to Musk’s buyout. The “poison pill” tactic makes it harder for someone to acquire enough shares and is formally known as the limited duration shareholder rights plan.
Musk announced during a TED Talk last week that he had a plan b ready for if the board decided to reject his attempt to buy the company.
Musk has recently referred to the board move as an oppositional move to the company shareholder’s interest.
The members of a company’s board have a fiduciary duty to the company. That means they have to seriously consider an offer to buy the company at a significant market premium. Instead of doing that, Twitter’s board seems to only be looking at their own finances, since they reportedly receive 3 million dollars a year and would get zero dollars a year if Musk’s offer were accepted. Why do you think DeSantis is getting involved?