TWITTER Inc's TWTR.N board directors can lean on concerns about the fate of the social media platform under Elon Musk to rebuff him, but if they decide to explore a sale, price will override all other considerations, corporate governance experts said.
The San Francisco-based company received a $43 billion "best and final" offer from Musk last week, which it is still reviewing. Musk, the world's richest person and CEO of Tesla Inc TSLA.O, has said he wants to make Twitter an "arena for free speech," cheering Twitter's critics who complain about censorship and alarming those worried about hate speech and bullying.
Twitter's board is expected to reject Musk's bid as too low by April 28, when it is scheduled to report first-quarter earnings, people familiar with the matter have said. Even if Twitter's bankers declared the offer was fair, the company's board directors have wide latitude to reject it if they thought the platform was better off with its current content strategy, corporate governance lawyers and professors said.
This would change, however, if, Twitter's board decided to explore a sale, either because it received more offers or it decided to solicit acquisition bids, these experts said.
Corporate law in Delaware, where Twitter is incorporated, dictates that once a company launches a sale process, securing the most lucrative deal for shareholders becomes the overarching consideration. Board directors are not allowed to factor in what would happen to the company in their deliberations if existing shareholders will cash out.
"All these culture and discourse and democracy considerations fall by wayside because that’s not going to benefit shareholders anymore," said Ann Lipton, a professor at Tulane Law School.
Twitter and Musk spokespeople did not immediately respond to requests for comment.
As it stands, board directors legally have wide discretion on how to handle Musk's bid because it was unsolicited. The directors can refuse to engage with Musk if they believe the company's content policies and culture better serve the long-term interests of its investors, said Brian Quinn, a professor at Boston College Law School.
"If they think Musk will turn Twitter into a free-speech hellscape, that is sufficient justification," Quinn said.
Whether Twitter will decide to explore a sale will likely hinge on whether it receives attractive and credible offers in the coming days.
Private equity firm Thoma Bravo LP contacted Twitter last week to express interest in putting together an offer that would challenge Musk, but there is no certainty that such a bid will materialize, sources told Reuters. Sources have also said that other buyout firms have since contacted Twitter to register their acquisition interest.
NO FOUNDER AROUND TO PROTECT IT
Unlike its peers Snap Inc SNAP.N and Facebook owner Meta Platforms Inc FB.O, Twitter is not controlled by founders with supervoting shares who can shoot down a deal even if viable and lucrative offers are on the table. Twitter adopted a poison pill last week to prevent Musk, who has amassed a stake in the company of more than 9%, from raising his stake to more than 15% without negotiating a deal with its board.
Adding to its vulnerability, Twitter has not set up a structure governing the moderation of its platform that would survive under new ownership. It has not, for example, set up a formal process for an independent arbiter to review its decisions, though its users can appeal to the company if their account is locked or suspended.
Meta, on the other hand, has set up an external Oversight Board, which allows users to appeal Facebook's decisions to remove or leave up certain content. The Oversight Board’s decisions are binding.
Twitter could face backlash from some of its shareholders if it does not explore a sale, including from Musk, who has tweeted that he wants the company's shareholders to have a say irrespective of what its board thinks. Musk could challenge the board in the company's 2023 annual meeting of shareholders by putting forward his own slate of nominees, and, if successful, force the company to explore a sale.
Unless Twitter decides to explore a sale, it can continue to look out for the interests of stakeholders beyond shareholders, such as its users and employees, corporate governance experts say.
"You are explicitly allowed to point to non-shareholder constituencies as your rationale for wanting to beat back the takeover," said Eric Talley, a professor at Columbia Law School.
Reuters
Wed Apr 20 2022
![Analysis - Twitter exploring a sale would make free speech an afterthought Analysis - Twitter exploring a sale would make free speech an afterthought](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2020-08/41596537238_Twitter.jpg)
Unless Twitter decides to explore a sale, it can continue to look out for the interests of stakeholders beyond shareholders, such as its users and employees, corporate governance experts say. - REUTERS
![Malaysia dijangka tarik pelaburan baharu dalam sektor tenaga dari Singapura dan Vietnam - Fadillah Malaysia dijangka tarik pelaburan baharu dalam sektor tenaga dari Singapura dan Vietnam - Fadillah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723715543_fadillahyusof.jpg)
Malaysia dijangka tarik pelaburan baharu dalam sektor tenaga dari Singapura dan Vietnam - Fadillah
Malaysia dijangka menarik pelaburan baharu dalam sektor tenaga dari Singapura dan Vietnam, kata Timbalan Perdana Menteri Datuk Seri Fadillah Yusof.
![EU derma 215,000 vaksin cacar monyet ke Afrika - Suruhanjaya Eropah EU derma 215,000 vaksin cacar monyet ke Afrika - Suruhanjaya Eropah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-11/61701237866_TBcacarmonyetmonk.jpg)
EU derma 215,000 vaksin cacar monyet ke Afrika - Suruhanjaya Eropah
Suruhanjaya Eropah mengumumkan bahawa pihaknya sedang menyelaraskan sumbangan lebih 215,000 dos vaksin cacar monyet kepada Pusat Kawalan dan Pencegahan Penyakit Afrika (Africa CDC).
![Keldai akaun: Penglibatan pelajar IPT secara tidak sengaja, ditipu sindiket - KPN Keldai akaun: Penglibatan pelajar IPT secara tidak sengaja, ditipu sindiket - KPN](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/51716596370_KetuaPolisNegara.jpg)
Keldai akaun: Penglibatan pelajar IPT secara tidak sengaja, ditipu sindiket - KPN
Polis tidak menolak kemungkinan pembabitan pelajar IPT sebagai pemilik keldai akaun disebabkan mereka turut menjadi mangsa penipuan sehingga akaun bank mereka digunakan sindiket.
![PRK Nenggiri: Jentera BN perlu teruskan gerak kerja hingga kempen berakhir PRK Nenggiri: Jentera BN perlu teruskan gerak kerja hingga kempen berakhir](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/41719285717_AhmadMaslan.jpg)
PRK Nenggiri: Jentera BN perlu teruskan gerak kerja hingga kempen berakhir
Jentera Barisan Nasional (BN) diingatkan terus melaksanakan gerak kerja sehingga tempoh kempen Pilihan Raya Kecil (PRK) Dewan Undangan Negeri (DUN) Nenggiri berakhir 11.59 malam esok.
![Kemajuan projek ECRL di empat negeri capai 70.13 peratus Kemajuan projek ECRL di empat negeri capai 70.13 peratus](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723734201_ECRLlandasankeret.jpg)
Kemajuan projek ECRL di empat negeri capai 70.13 peratus
Anthony Loke berkata pembinaan projek berkenaan berjalan lancar dan mengikut jadual ditetapkan.
![Parti pembangkang Thailand enggan sokong calon Perdana Menteri pakatan parti pemerintah Parti pembangkang Thailand enggan sokong calon Perdana Menteri pakatan parti pemerintah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/81723718306_tbPaetongtarnShinaw.jpg)
Parti pembangkang Thailand enggan sokong calon Perdana Menteri pakatan parti pemerintah
Parti Rakyat tidak akan menyokong pakatan pemerintah dalam pemilihan perdana menteri pada sesi parlimen Jumaat ini.
![Pasukan PBB akan lawat Bangladesh, siasat pembunuhan semasa protes pelajar Pasukan PBB akan lawat Bangladesh, siasat pembunuhan semasa protes pelajar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61722843505_BangladeshProtest.jpg)
Pasukan PBB akan lawat Bangladesh, siasat pembunuhan semasa protes pelajar
Pasukan penyiasat Pertubuhan Bangsa-Bangsa Bersatu (PBB) akan melawat Bangladesh minggu depan untuk menyiasat ratusan kematian semasa protes yang diketuai pelajar baru-baru ini.
![Misi perdagangan Pulau Pinang ke AS tingkat hubungan pelabur, teroka teknologi baharu Misi perdagangan Pulau Pinang ke AS tingkat hubungan pelabur, teroka teknologi baharu](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/71723721338_TBChowKonYeow.jpg)
Misi perdagangan Pulau Pinang ke AS tingkat hubungan pelabur, teroka teknologi baharu
Misi pelaburan dan perdagangan InvestPenang ke AS berjaya mengeratkan hubungan dengan pelabur dari negara tersebut serta menyediakan peluang meneroka teknologi AI dan teknologi terkini.
![Keluarga Muhammad Nidza Afham reda, serah hal siasatan kepada polis Keluarga Muhammad Nidza Afham reda, serah hal siasatan kepada polis](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/41723731965_Afham.jpg)
Keluarga Muhammad Nidza Afham reda, serah hal siasatan kepada polis
Keluarga Muhammad Nidza Afham Mokhtar menyerahkan sepenuhnya urusan siasatan kematian Allahyarham kepada pihak berkuasa.
AWANI 7:45 [15/08/2024] – Nidza Afham selamat dikebumikan | Pembunuhan kejam | Sangkal dakwaan pengguna X | Srettha dilucut jawatan PM
#AWANI745 malam ini bersama Irfan Faruqi langsung dari Johor Bahru;
- Kematian Nidza Afham tiada unsur jenayah, punca masih tunggu siasatan makmal
- Pemain bola bawa kerambit masa gaduh rupa-rupanya senarai 'wanted' polis
- Produk Malaysia mendunia, kerajaan sasar tembusi pasaran antarabangsa
- Lebih 24 jam terkandas di Jeddah, jemaah umrah tuntut penjelasan Malaysia Airlines
- Kematian Nidza Afham tiada unsur jenayah, punca masih tunggu siasatan makmal
- Pemain bola bawa kerambit masa gaduh rupa-rupanya senarai 'wanted' polis
- Produk Malaysia mendunia, kerajaan sasar tembusi pasaran antarabangsa
- Lebih 24 jam terkandas di Jeddah, jemaah umrah tuntut penjelasan Malaysia Airlines
![Threads kini hampiri 200 juta pengguna aktif bulanan Threads kini hampiri 200 juta pengguna aktif bulanan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-08/61722488727_MetaThreads.jpg)
Threads kini hampiri 200 juta pengguna aktif bulanan
MARK Zuckerberg hari ini berkongsi bahawa Threads terus memperlihatkan peningkatan pengguna aktif dari hari ke hari.
![X sedang bangunkan kaedah halang pautan pada respons balasan X sedang bangunkan kaedah halang pautan pada respons balasan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71714708473_tbGENERICPHONE.jpg)
X sedang bangunkan kaedah halang pautan pada respons balasan
Melalui ciri ini, pemilik tweet atau perkongsian asal boleh memilih sama ada membenarkan pautan pada respons balasan mereka, atau mematikannya.
![Selepas setahun, Threads kini punyai lebih 175 juta pengguna aktif bulanan Selepas setahun, Threads kini punyai lebih 175 juta pengguna aktif bulanan](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2023-12/51702622584_TBThreadsjpg.jpg)
Selepas setahun, Threads kini punyai lebih 175 juta pengguna aktif bulanan
Threads dilancarkan pada Julai 2023, memperlihatkan jutaan pengguna berebut mendaftar dalam hanya beberapa jam ia diperkenalkan.
![Pendapatan X merosot teruk, bakal lancar sistem pembayaran sendiri Pendapatan X merosot teruk, bakal lancar sistem pembayaran sendiri](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-06/41718408932_XTwitter.jpg)
Pendapatan X merosot teruk, bakal lancar sistem pembayaran sendiri
Pendapatan X dalam enam bulan pertama 2023 ialah $1.48 billion yang bersamaan penyusutan 40 peratus berbanding tempoh sama tahun lalu.
![Indonesia sedia haramkan X jika tidak halang kandungan lucah Indonesia sedia haramkan X jika tidak halang kandungan lucah](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71714708473_tbGENERICPHONE.jpg)
Indonesia sedia haramkan X jika tidak halang kandungan lucah
Menteri berkenaan telah menghantar surat amaran kepada X berkaitan perkara ini.
![Likes di X kini disorok untuk semua pengguna Likes di X kini disorok untuk semua pengguna](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/71714708473_tbGENERICPHONE.jpg)
Likes di X kini disorok untuk semua pengguna
Hanya pemilik akaun boleh melihat Likes peribadi selepas ini.
![Ciri pemesejan peribadi Chats diperkenal di Bluesky Ciri pemesejan peribadi Chats diperkenal di Bluesky](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/51716441791_mediasosialBluesky.jpg)
Ciri pemesejan peribadi Chats diperkenal di Bluesky
Sokongan media, mesej berkumpulan dan beberapa ciri keselamatan akan diperkenalkan pada Chats di masa akan datang.
![X bakal tampil ciri sorokkan Like kepada semua pengguna X bakal tampil ciri sorokkan Like kepada semua pengguna](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/51716377152_TBXHIDEPROFILE.jpg)
X bakal tampil ciri sorokkan Like kepada semua pengguna
Sebelum ini untuk menyorokkan Like anda perlu melanggan kepada X ah
![X kini beralih kepada domain X.com, tidak lagi guna jenama Twitter X kini beralih kepada domain X.com, tidak lagi guna jenama Twitter](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/51716004099_TBXCOM.jpg)
X kini beralih kepada domain X.com, tidak lagi guna jenama Twitter
https://amanz.my/2024454834/
![X perkenal 'Stories' - ciri rumusan berita oleh AI untuk pelanggan berbayar X perkenal 'Stories' - ciri rumusan berita oleh AI untuk pelanggan berbayar](https://resizer-awani.eco.astro.com.my/tr:w-177,h-100,q-100,f-auto/https://img.astroawani.com/2024-05/61714965864_XStories.jpg)
X perkenal 'Stories' - ciri rumusan berita oleh AI untuk pelanggan berbayar
Ia boleh diakses pada tab -Explore-, yang sedia menyenaraikan sejumlah berita yang hangat dibincangkan pada platform tersebut.