Twitter Adopts Poison Pill To Block Musk Takeover

April 15, 2022 Business, Social Media

Twitter adopted a limited duration shareholder rights plan, often called a “poison pill,” a day after billionaire Elon Musk offered to buy the company for $43 billion, the company announced Friday. The board voted unanimously to adopt the plan.

Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter’s outstanding common stock without the board’s approval, other shareholders will be allowed to purchase additional shares at a discount.

The plan is set to expire on April 14, 2023. Such a move is a common way to fend off a potential hostile takeover by diluting the stake of the entity eying the takeover.

Read the full article.

BREAKING: Twitter’s board has adopted the poison pill in response to @elonmusk‘s offer to buy the company.

A poison pill is when shareholders are allowed to buy more shares at a discount to dilute an acquirer’s stake.https://t.co/rTs5ofMC4x

— Greg Price (@greg_price11) April 15, 2022