Twitter Implements Poison Pill In Response To Musk Bid

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.

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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