Twitter’s board of directors has adopted a limited-term shareholder rights plan called a ‘poison pill’ that could make it harder for richest man of the world, Elon Musk to acquire the social media company. The move would allow existing Twitter shareholders except for Musk, the Chief of Tesla, to buy additional shares at a discount, thereby diluting Musk’s stake in the company and making it harder for him to corral a majority of shareholder votes in favor of the acquisition. The move will prevent anyone from having more than a 15% stake in the company.
Musk currently owns around 9% of Twitter’s shares. The Twitter board detailed its defence plan to the US Securities and Exchange Commission and put out a statement saying it was needed because of Musk’s unsolicited, non-binding proposal to acquire Twitter. The Tesla and SpaceX CEO has offered to acquire all the shares in Twitter he does not own for 54.20 dollar per share, valuing the company at 41.4 billion dollar.
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