The head of one of the nation’s most prominent civil rights organizations has called on Twitter’s (NYSE: TWTR) to reject Elon Musk’s proposed takeover bid.
What Happened: Marc H. Morial, president and CEO of the National Urban League, sent a letter to Bret Taylor, Twitter’s independent board chairman, warning about the “potentially harmful implications” within Musk’s proposals to eliminate the platform’s terms of service standards in pursuit of his concept of free speech.
“As an organization that is dedicated to fighting violent online extremism, harmful data sharing, and digital discrimination, we know that transitioning ownership to Mr. Musk and shielding the company of any oversight would have grave implications for the civil rights protections that are so important to our constituencies,” Morial wrote. “I ask that you consult with the civil rights community on this — or any other proposal that would place control of this important company in the hands of a sole owner — and ultimately deny Mr. Musk’s request to own Twitter (NYSE:TWTR).”
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Morial, a former New Orleans mayor, praised Twitter’s actions in banning users that bring hate speech, disinformation and threats of violence to the platform. He also noted the National Urban League’s previous meetings with former Twitter CEO Jack Dorsey “on the importance of civil rights considerations when making decisions that would have a global impact.”
Morial predicted a new wave of online chaos if Twitter’s current content moderation standards were eliminated.
“Without key protections and safeguards, much of the concerning activities that we see on Twitter, including white supremacist propaganda, racial and religious hatred, voter suppression through election disinformation, algorithmic bias and discrimination, and the hardening of our national discourse are likely to proliferate under Musk’s ownership,” he continued. “The potential to negatively impact millions directly and our nation’s culture and democracy indirectly are exponential and should be part of your analysis in reviewing this — or any other — offer of purchase.”
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What Happens Next: Musk’s proposal to take over Twitter was, in his own words, “not about economics” but rather was rooted in his alleged concern that the platform did not enable all people to speak their minds without fear of being banned.
“I believe free speech is a societal imperative for a functioning democracy,” he said in his filing with the U.S. Securities and Exchange Commission, adding, “Twitter has extraordinary potential. I will unlock it.”
Still, despite his repeated talk about wanting to buy Twitter, the Tesla (NASDAQ: TSLA) CEO has yet to put the financial mechanisms of a purchase into motion. He has posted two tweets involving the word “tender,” which some observers believe might be a cue for a potential tender offer to Twitter shareholders.
However, Bloomberg reported that three major private equity firms — Blackstone Inc. (NYSE: NYSE:BX), Brookfield Asset Management (NYSE: BAM) and Vista Equity Partners — expressed no interest in aiding Musk’s takeover bid.
TWTR Stock Action: Twitter shares opened for trading on Wednesday at $46.16, sandwiched between a 52-week range of $31.30 to $73.34.
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