Twitter Board Takes Poison Defense To Prevent Elon Musk Takeover
SAN FRANCISCO – Twitter on Friday ordered a block on tech baron Elon Musk’s proposed takeover of the social media company, adopting a so-called “poison dose” strategy often used to prevent block tenders by hostile companies.
Twitter’s board of directors voted unanimously to approve the strategy, officially known as the shareholder rights plan, the company said in a statement. declare posted online.
“The Benefit Plan will reduce the chance that any organization, individual, or group will gain control of Twitter,” said the San Francisco-based company.
Several news organizations including Bloomberg reported on Thursday that the Twitter board has considering poison defense. This strategy allows existing shareholders who are not trying to take over to buy more shares at a discount, diluting the equity of someone like Musk.
Musk on Thursday announced an offer to buy Twitter in a $40 billion deal that would take the company’s stock off the public market and give Musk full control. He said Twitter’s rules about online speech have become too heavysuffocating some of the public debate that deserves to be heard even if it is hate speech.
Twitter did not comment on the details of Musk’s proposal, and the company remains open to the possibility of reaching an agreement to possibly take over.
“The Benefit Plan does not preclude the Board from engaging with the parties or accepting a proposed acquisition if the Board believes it is in the best interest of Twitter and its shareholders,” the company said.
Twitter’s annual shareholder meeting is plan on May 25, an event that could provide another forum for Musk to express his grievances or seek to influence the direction of Twitter.
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