Twitter Embraces ‘Poison Pill’ to Prevent Hostile Takeover of Elon Musk

The $43 billion offered by Elon Musk has not gone down well with Twitter ‘s board of directors .


Twitter is taking action with one goal: not to be bought by Elon Musk .

The billionaire offered on Thursday a whopping $43 billion to acquire the social network, an offer that has not been accepted.

Elon Musk sought to make a hostile takeover, offering $54.20 per share.

What the head of SpaceX , Tesla and The Boring Company is looking for is to turn Twitter into a private company, since he currently believes that “it will not prosper or serve (their freedom of expression) the social imperative in its current form.”

The “poison pill” against Elon Musk

Twitter announced this Friday that the board of directors decided to adopt a temporary plan baptized “The Rights Plan”.

This is called a “poison pill.” Effectively a defensive strategy that public companies like Twitter can take in the face of a hostile takeover attempt.

This seeks that “all shareholders can capitalize the full value of their investment in Twitter” preventing an entity, person or group from gaining control of Twitter via accumulation in the free market. That is, a lock that will prevent hostile takeovers like the one sought by Elon Musk .

Some shareholders will be able to buy more shares if an external entity not authorized by the board of directors tries to gain control of the company.

This temporary Twitter plan has an expiration date of April 14, 2023.