Twitter adopts ‘poison pill’ strategy to block Elon Musk from buying outright

Twitter’s ‘poison pill’ strategy

Poison pill is roughly understood as a strategy that the company self-defeating stock price own company, to the detriment of the company or the individual who wants to acquire the company. Approving this strategy on April 15, shareholders Twitter trying to stop Elon Musk acquire this social media platform.

Fear of Elon Musk buying out Twitter, the platform social network this through the strategy of ‘poison pill’ reuters

Specifically, the “poison pill” strategy can dilute the shares of anyone who is accumulating more than 15% of the company’s shares by selling more shares to other shareholders at an attractive discount.

According to the plan, the “poison pill” strategy will be in effect for 364 days.

Many individuals and companies ‘crave’ Twitter

Beside the CEO Teslamany individuals and organizations are also intending to acquire Twitter, including Thoma Bravo – a joint stock company specializing in technologywith assets of more than 103 billion USD (as of the end of December 2021).

Speaking to Reuters news agency, Thoma Bravo said they are focused on buying Twitter outright, but it is not clear how much they will be willing to spend and what the specific plan will be.

Still, Thoma Bravo’s interest has raised concerns that many private equity firms are scrambling to Twitter. Unlike major tech corporations, most acquirers will not face antitrust restrictions in their acquisition of Twitter.

And another possibility…

Instead of “fight” directly with technology billionaire Elon Musk – who received the magazine The Forbes Rated as the richest world With a net worth of $265 billion, some private equity firms may be inclined to boost Musk’s bid by partnering with him.

However, industry insiders say Musk’s continued criticism of Twitter for its reliance on advertising to generate most of its revenue has prompted some private equity firms to be wary of partnering with him.

Elon Musk made an offer to buy Twitter outright after owning more than 9% of the shares of this platform. The tech billionaire has offered a “last and best” price of $54.2 per share, and if rejected, Musk will reconsider his position as a Twitter shareholder.

According to an insider by Reuters, Twitter’s board is expected to need a few more days to evaluate Musk’s bid and make the best decision.