Staff Reports
The ongoing disagreement between Elon Musk, Twitter, and Twitter is still going strong. An open letter from 18 Republican members of Congress was sent out on Friday, asking the board to save any data related to Musk's aggressive takeover of Twitter.
If Republicans take control of the House of Representatives in the next midterm elections, they might exploit the minority party's formal request, even if it is not legally binding.
How many of you would be ready to pony up a considerable sum of money to see the Republican-controlled House Judiciary Committee question members of Twitter's board of directors under oath? Awesome. Make sure you stuff yourself silly with a ton of popcorn.
The Republicans asked in letters released to CNBC that Twitter Board Chairman Bret TAY preserve any conversations made by board members from either their personal or business accounts. When Musk's hostile takeover bid was under consideration, this included encryption software that Twitter was frantically fighting to keep out.
Bret Taylor, Twitter's board chair, was specifically requested in one of the letters. After Jim Jordan's passing,
This letter will be sent to Congress to seek the preservation of any records and materials related to Musk's effort to acquire Twitter. Twitter's response and examination of Musk's offer, as well as Twitter's consideration of the interests of its shareholders in relation to Musk's proposal, are included in the report.
A company's board of directors are held solely accountable to its shareholders (even minority owners) when they make pledges known as "fiduciary obligations," according to Jordan.
The following is what I saw in your letter:
Any papers, conversations, or other material, electronic information, or metadata that may be relevant in this congressional investigation should be preserved in accordance with this notification. A sort of information that specifies the content of electronic files, metadata, is among these types of details.
Although Twitter just revealed its "poison pills" strategy one week before to Musk's offer, we've heard that the firm has not yet reacted to Musk's offer. As soon as Musk, who now owns more than 9% of the firm, reaches a shareholding of 15%, his takeover would be complete. It would provide other Twitter investors the option to purchase more shares at a substantial discount. A share's original selling price was two times its current value when this happened. It is theoretically possible that the flood of shares that Musk would get from the sale of his stock would reduce the value of his share. All of these things will go a long way toward increasing the price of ownership.
Additional obligations of fiduciary duty were raised in the letter, as described in the paragraph above.
Shareholder interests must always come first for Twitter's board of directors, who have a fiduciary duty to do just that. Despite the fact that many firm leaders urge progressive measures that have nothing to do with the interests of shareholders, these obligations nonetheless apply.
There is a lot more going on in this situation. Elon Musk will always be Elon Musk.
In the eyes of the world, Elon Musk isn't the most successful person. Additionally, he doesn't work with anybody else in the company that has the same level of experience as him. On the other side, Musk behaves like a hamster on its wheel when he tweets, much as he does when he's playing with the Twitter board.
Elon Musk will decide whether or not he will acquire Twitter regardless of whether or if the Twitter board agrees with the House Republicans' request to keep the correspondence.
The preceding is a summary of an article that originally appeared on Real News Real Patriots.
