Twitter's board of directors is fighting back hard in order to prevent Elon Musk from buying the social media site.
The entire board just unanimously approved a "poison pill" measure which is meant to guard against a hostile takeover.
From CNBC:
Twitter adopted a limited duration shareholder rights plan, often called a "poison pill," a day after billionaire Elon Musk offered to buy the company for $43 billion, the company announced Friday.
The board voted unanimously to adopt the plan.
Under the new structure, if any person or group acquires beneficial ownership of at least 15% of Twitter's outstanding common stock without the board's approval, other shareholders will be allowed to purchase additional shares at a discount.
The plan is set to expire on April 14, 2023.
Such a move is a common way to fend off a potential hostile takeover by diluting the stake of the entity eying the takeover.
So, what does this mean exactly?
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It's intended to give the Twitter board, which is very anti-Musk, more negotiating power.
This is intended to buy more time as the Twitter board scrambles to find a way out of allowing Musk to buy the company.
It may end up seriously backfiring and hurting the company itself.
The next move is the mad lad's, and I hear Elon's pretty good at chess!
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