This week the Twitter Board of Directors adopted a “poison pill” in an attempt to keep Elon Musk from buying Twitter:
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.
Speaking of Twitter shareholders and the company’s Board of Directors, Musk has taken notice of something:
Wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders.
— Elon Musk (@elonmusk) April 16, 2022
This is the tweet Musk was responding to:
Elon Musk is in for a bad time.
I’m not sure he’s prepared to take on a couple PhDs, a few MBAs, and a Baroness who use Twitter once a year (to reset their passwords) and collectively own 77 shares of the company. pic.twitter.com/sJmKwHbzVh
— Chris Bakke (@ChrisJBakke) April 16, 2022
Things are going to get interesting, that’s for sure. Or, should we say, more interesting.
the poison pill is a bluff.
— Lisa (@Rockprincess818) April 16, 2022
🚨🚨🚨this is getting good. https://t.co/dflVwaVz31
— Catturd ™ (@catturd2) April 16, 2022