Twitter Implements Poison Pill In Response To Musk Bid

Elon Musk Twitter Tesla

Twitter implemented a limited duration shareholder rights plan on Friday following Elon Musk’s bid to buy the company.

The plan, colloquially known as a “poison pill,” would essentially allow shareholders to buy additional shares at a discounted price if any entity or person acquires 15 percent or more of the company without board approval. Currently, the Tesla CEO owns around 9.2 percent of Twitter.

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It’s the latest development in the Twitter saga of recent weeks. Private equity giant Thoma Bravo is also considering a bid for Twitter, the New York Post reported Thursday. According to the Post, it’s unclear how much Thoma Bravo would offer or when it would make its bid.

Musk bought a 9.2 percent stake in Twitter nearly two weeks ago, and was going to be appointed to the social network’s board of directors before declining the seat. As a member of the board, Musk would be limited to a 14.9 percent ownership stake in the company.

On Thursday, Musk submitted an offer to buy Twitter for around $43 billion, citing concerns over free speech with the company in its current form as his motivation to take it private. 

“I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced,” Musk wrote. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder. Twitter has extraordinary potential. I will unlock it.”

Illustration: Tesla Owners Club Belgium Creative Commons photo

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