Twitter Takes ‘Poison Pill’ Measures Against Elon Musk

Teodora Dobrilova
Teodora Dobrilova

Updated · Apr 18, 2022

SHARE:

Techjury is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more.

The board voted on the adoption of the limited duration shareholder rights plan, a.k.a “poison pill”, on Friday.

Reducing the Risk

Twitter’s Board of Directors voted to adopt a limited duration shareholder rights plan after Elon Musk proposed to buy the platform. That came right after he refused to join the Board.

In short, the plan allows other shareholders to get more shares of the company for a good price. This will effectively lower Musk's stake, which is currently 9.2%.

According to the company, this will “reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders.

The solution, however, is temporary - it will expire on April 14, 2023.

The platform’s stock fluctuated a bit Thursday. It closed at around $45 - quite lower than the price Musk offered, which was $54.20 per share.

Twitter is currently among the most popular social media outlets and its advertising potential is enormous. 

SHARE:

Teodora Dobrilova

Teodora Dobrilova

Teodora devoted her whole life to words – reading, writing and trying to be original on social media. She got certified in digital marketing but still feels she’s not cool enough to be an influencer. (We all disagree – she influences the team pretty well.) She finished a master’s degree focused in Literature, Publishing, Mass Media. Her hobbies include traveling, and reading. Teddy hopes that yoga will be the thing to finally teach her some patience and show her the path toward world domination. Maybe modern tech can also help her with that.

Leave your comment

Your email address will not be published.