(PresidentialInsider.com)- During a Monday episode of “Mornings with Maria,” Andersen Capital Management CIO Peter Andersen claimed Twitter’s “poison pill” strategy to thwart Elon Musk’s takeover proposal demonstrates the company’s “dysfunctionality.”
Andersen told guest presenter Dagen McDowell that the corporation uses a “1980s defense” to deal with its Elon Musk problem, arguing that the company has to be totally revamped.
Andersen expressed his delight at the prospect, saying that he thinks this will demonstrate, to Twitter itself, the dysfunctionality of their board.
He hopes they’re paying attention because, according to corporate governance 101, the board of directors does not control the firm; instead, they represent the shareholders.
Andersen thought everyone knew that, and for them to dismiss such an approach in such a short period of time, less than 24 hours, and come out with a 1980s defense of a poison pill gives the impression that, in that board, everyone is getting along to just go along. It’s hard to have an independent voice on a board to give a contrary opinion.
Andersen said it’s a lot of fun to speculate about Musk, if he succeeds, becoming the new father of free expression. Apart from that, it is purely a legal and ethical issue. It’s not only about the celebrity’s appeal, which is fascinating and alluring to discuss, but it’s also about corporate governance on a more fundamental level.
“What is the right way?” Andersen asks. “What’s the best practice to be on a board of directorship?”
Andersen concluded by saying he thinks we’re seeing now that Twitter needs to be overhauled completely.
Musk said he invested in Twitter because he believes it has the potential to be the global platform for free expression, which he believes is a fundamental requirement for a functioning democracy.
However, after making his investment, he’s come to realize that the firm, in its current form, can neither survive nor serve this societal necessity,”
Musk agrees with Anderen that Twitter must be reformed as a private firm.
He said that his latest offer is his best and final offer, and if it is not accepted, he will have to reevaluate his shareholder position.
Musk believes Twitter has tremendous potential, and he will unlock it.