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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