Virtual Legality

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

***

SUPPORTING THE CHANNEL

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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

***

"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.

***

Twitter: @hoeglaw

Web: hoeglaw.com

Elon Musk has put his money where his mouth is, purchasing a substantial portion of Twitter's outstanding stock before putting in an offer for all the rest.

But what is the cost of joking around?

Pretty soon we'll be talking about real money...in Virtual Legality.

CHECK OUT THE VIDEO AT: https://youtu.be/-DjImdKRwH0

#ElonMusk #Twitter #Takeover

***

SUPPORTING THE CHANNEL

UTREON - https://utreon.com/c/hoeglaw/

PATREON - https://www.patreon.com/VirtualLegality

STORE - https://teespring.com/stores/hoeg-law-store

BITCAST (11AM Eastern) - https://www.youtube.com/channel/UCgHBXONMT06nX_8RZ5r32UA

***

Discussed in this episode:

PLAYLIST

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

TWEETS AND ARTICLES

https://twitter.com/elonmusk/status/1026872652290379776

https://www.axios.com/us-government-sues-elon-musk-1538079032-7f3dfc1c-ea3a-4f00-a8b9-d2cb8f9d0c57.html

SEC FILINGS

https://www.sec.gov/Archives/edgar/data/0001418091/000110465922045641/tm2212748d1_sc13da.htm

PRICING HISTORY

https://www.wsj.com/market-data/quotes/TWTR/historical-prices

***

"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.

null

Elon Musk has put his money where his mouth is, purchasing a substantial portion of Twitter's outstanding stock.

But with his third amended filing with the Securities and Exchange Commission (SEC) now public, all the cards on the table. Will the board approve the sale of all of Twitter, or set the stage for one of the most public hostile takeovers in US history?

You just know he laughed as he added that twenty cents...in Virtual Legality.

CHECK OUT THE VIDEO AT: https://youtu.be/EG3iFoLQIIE

#ElonMusk #Twitter #Takeover

***

SUPPORTING THE CHANNEL

UTREON - https://utreon.com/c/hoeglaw/

PATREON - https://www.patreon.com/VirtualLegality

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BITCAST (11AM Eastern) - https://www.youtube.com/channel/UCgHBXONMT06nX_8RZ5r32UA

***

CHAPTERS

00:00 Introduction

01:43 History - The Williams Act

08:56 Elon Makes His Bid

26:52 Board Defenses and Hostile Takeovers

39:18 Conclusion

***

Discussed in this episode:

PLAYLIST AND PRIOR VIDEOS

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

https://youtu.be/OPi60M-UZ1M

https://youtu.be/I-rYQiNasmU

TWEETS

"I made an offer..."

Elon Musk (April 14, 2022)

https://twitter.com/elonmusk/status/1514564966564651008

"Elon has decided not to join our board..."

Parag Agrawal (April 10, 2022)

https://twitter.com/paraga/status/1513354622466867201

"I read somewhere that the Twitter CEO/board pretty much has to accept"

Daniel Sampaio (April 14, 2022)

https://twitter.com/DanXcel/status/1514602107491348480

LAWS AND LEGAL ANALYSIS

"What is the Williams Act?"

Corporate Finance Institute Webpage

https://corporatefinanceinstitute.com/resources/knowledge/finance/williams-act/

15 U.S. Code § 78m - Periodical and other reports

https://www.law.cornell.edu/uscode/text/15/78m

17 CFR § 240.13d-1 - Filing of Schedules 13D and 13G

https://www.law.cornell.edu/cfr/text/17/240.13d-1

DGCL 203. Business combinations with interested stockholders.

https://delcode.delaware.gov/title8/c001/sc06/index.html

ARTICLES/PRESS RELEASES

"Elon Musk faces shareholder lawsuit over delay in disclosing Twitter stake"

Fox Business (April 13, 2022)

https://www.foxbusiness.com/markets/elon-musk-sued-by-shareholders-over-delay-in-disclosing-twitter-stake

"Twitter Confirms Receipt of Unsolicited, Non-Binding Proposal from Elon Musk"

Twitter (April 14, 2022)

https://www.prnewswire.com/news-releases/twitter-confirms-receipt-of-unsolicited-non-binding-proposal-from-elon-musk-301525749.html

"Delaware’s Antitakeover Statute Continues to Give Hostile Bidders a Meaningful Opportunity for Success"

Harvard Law School Forum on Corporate Governance (July 29, 2010)

https://corpgov.law.harvard.edu/2010/06/29/delawares-antitakeover-statute-continues-to-give-hostile-bidders-a-meaningful-opportunity-for-success/

"Why Is a Shareholder Rights Plan Called a "Poison Pill?""

Investopedia Website (As Updated April 13, 2022)

https://www.investopedia.com/ask/answers/042015/why-shareholder-rights-plan-called-poison-pill.asp

***

"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.

null

(0:00) Introduction

(1:43) History - The Williams Act

(8:56) Elon Makes His Bid

(26:52) Board Defenses and Hostile Takeovers

(39:18) Conclusion

California's Department of Fair Employment and Housing (DFEH) tried and failed to stop the US Equal Employment Opportunity Commission (EEOC) from settling with Activision Blizzard, but the two agencies' fight was one of the ugliest in recent memory.

Now, reports have leaked that the lead lawyers for the DFEH have either been fired or resigned as a result of "interference" from their own state's Governor Gavin Newsom.

I'm sorry, what?

A whole, whole lot to discuss here.

CHECK OUT THE VIDEO AT: https://youtu.be/IIIdsnyWFpc

It turns out executive branch departments are still lead by the executive ...in Virtual Legality.

#Activision #California #DFEH

***

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***

Discussed in this episode:

"Activision Under Fire: A Legal View" - Hoeg Law

https://www.youtube.com/playlist?list=PL1zDCgJzZUy9PBxr5dNcoQLh2erIt2XrZ

"COLLUDING WITH ACTIVISION? | California's DFEH Escalates War on EEOC (VL624)" - Hoeg Law (February 8, 2022)

https://studio.youtube.com/channel/UCi5RTzzeCFurWTPLm8usDkQ?o=U

TWEETS

https://twitter.com/HoegLaw/status/1511830466831257603

ARTICLE

"California Lawyer Quits Over Allegation Newsom Meddled in Activision Case" - Bloomberg (April 13, 2022)

https://www.bloomberg.com/news/articles/2022-04-13/california-lawyer-says-governor-interfered-with-activision-suit

LAW AND LEGAL ANALYSIS

https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?sectionNum=1102.5&lawCode=LAB#

https://leginfo.legislature.ca.gov/faces/codes_displayText.xhtml?lawCode=CONS&division=&title=∂=&chapter=&article=V

https://codes.findlaw.com/ca/government-code/gov-sect-11150.html

https://codes.findlaw.com/ca/government-code/gov-sect-11152.html

https://codes.findlaw.com/ca/government-code/gov-sect-11154.html

https://codes.findlaw.com/ca/government-code/gov-sect-11157.html

https://codes.findlaw.com/ca/government-code/gov-sect-12901.html

https://www.justia.com/criminal/docs/calcrim/2600/2603/

MISC

https://www.dfeh.ca.gov/ExecBios/Director/

***

"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.

***

Twitter: @hoeglaw

Web: hoeglaw.com

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Elon Musk has put his money where his mouth is, purchasing a substantial portion of Twitter's outstanding stock.

But with a rapid turnaround from acceptance to rejection of a seat on the Twitter board of directors following such purchase, what can we surmise about just what happened here? What of fiduciary duties? Is a hostile takeover imminent?

Who needs duties when you have money...in Virtual Legality?

CHECK OUT THE VIDEO AT: https://youtu.be/OPi60M-UZ1M

#ElonMusk #Twitter #Board

***

SUPPORTING THE CHANNEL

UTREON - https://utreon.com/c/hoeglaw/

PATREON - https://www.patreon.com/VirtualLegality

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***

CHAPTERS

00:00 Introduction

01:20 Offering a Seat at the Table

06:35 Board Membership Rejected

12:39 Understanding Fiduciary Duty

20:10 Rejecting Duties

28:54 Conclusion

***

Discussed in this episode:

ARTICLES

"Elon Musk buys 9.2% stake in Twitter, making him the largest shareholder" - CNN.com (April 4, 2022)

https://www.cnn.com/2022/04/04/investing/elon-musk-twitter-shares-stake/index.html

"Musk backing off Twitter board opens door to hostile takeover" - CNBC (April 11, 2022)

https://www.cnbc.com/2022/04/11/musk-backing-off-twitter-board-opens-door-to-hostile-takeover.html

HOEG LAW VIDEOS

"Elon Musk Buys 9% of Twitter | Motivation: Free Speech...or Lulz? (VL653)" (April 4, 2022)

https://youtu.be/I-rYQiNasmU

SEC FILINGS

FORM 8-K - Twitter, Inc. (April 4, 2022)

https://www.sec.gov/ix?doc=/Archives/edgar/data/0001418091/000119312522095651/d342257d8k.htm

SCHEDULE 13D - Elon Musk (April 4, 2022)

https://www.sec.gov/Archives/edgar/data/1418091/000110465922042863/tm2211757d1_sc13d.htm

AMENDMENT No. 1 to SCHEDULE 13D/A (April 9, 2022)

https://www.sec.gov/Archives/edgar/data/1418091/000110465922044481/tm2212422d1_sc13da.htm

TWEETS

"I’m excited to share..." - Padrag Agrawal (April 5, 2022)

https://twitter.com/paraga/status/1511320953598357505?s=20&t=vPJ6oI5RtjC3uaFJI8Ar3Q

"Looking forward to working with Parag & Twitter board..." - Elon Musk (April 5, 2022)

https://twitter.com/elonmusk/status/1511322655609303043

"Elon has decided not to join our board..." - Padrag Agrawal (April 11, 2022)

https://twitter.com/paraga/status/1513354622466867201

LAW AND LEGAL ANALYSIS

DGCL Section 141

https://delcode.delaware.gov/title8/c001/sc04/

"Social Responsibility and Enlightened Shareholder Primacy: Views from the Courtroom and Boardroom" - HLS Forum (February 21, 2019)

https://corpgov.law.harvard.edu/2019/02/21/social-responsibility-and-enlightened-shareholder-primacy-views-from-the-courtroom-and-boardroom/

"Directors’ Fiduciary Duties: Back to Delaware Law Basics" - Skadden (February 19, 2020)

https://www.skadden.com/insights/publications/2020/02/directors-fiduciary-duties

"DUTIES OF CONTROLLING STOCKHOLDERS" - Berchem, Deutsch & Houpt (June 2012)

https://www.akingump.com/a/web/22475/aohG6/duties-of-controlling-stockholders-pli_article_june-2012.pdf

"What are Board Observer Rights, and How Should They be Structured?" - Doida Crow Legal (June 17, 2020)

https://www.doidacrow.com/what-are-board-observer-rights-and-how-should-they-be-structured/

***

"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.

***

Twitter: @hoeglaw

Web: hoeglaw.com

null

(0:00) Introduction

(1:20) Offering a Seat at the Table

(6:35) Board Membership Rejected

(12:39) Understanding Fiduciary Duty

(20:10) Rejecting Duties

(28:54) Conclusion

null

(0:00) Introduction (Thanks, FalkusVipus)

(1:00) Lego's Metaverse

(10:51) Sony and Lego Invest

(19:58) Meta Metaverse

(23:00) Unreal Leverage

(24:25) Conclusion