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What’s Twitter’s poison pill?

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What’s Twitter’s poison pill?

Twitter’s board of directors announced on Apr. 15, 2022, that it adopted a “poison pill” defense to protect the social media platform from “coercive or otherwise unfair” takeover tactics. The move would allow existing Twitter shareholders to buy additional shares at a discount, diluting Tesla CEO Elon Musk’s stake in the company and making it harder for him to achieve the majority of shareholder votes needed for the acquisition. Twitter’s plan will take effect if Musk’s roughly 9% stake grows to 15%._x000D_

Why would Twitter need a poison pill?

_x000D_On Apr. 14, Musk revealed an offer to buy the company for $43 billion, or $54.20 per share. Despite the poison pill defense, a filing made by the board on Apr. 18 says the plan should not interfere with any merger, offer, or other business combination approved by the board.

Extra questions & answers

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