BREAKING: Twitter Board Passes ‘Poison Pill’ To Stop Musk Takeover

Twitter’s board of directors has adopted a “poison pill” to thwart Tesla founder Elon Musk from outright buying the company.

The board has adopted a “limited duration shareholder rights plan,” which gives Twitter’s existing shareholders, save Musk, time to purchase additional shares at a discount, Axios reported Friday.

The desired effect is clearly to dilute Musk’s holding in the company, and make the cost of a takeover higher or even prohibitive.

Important:

The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments

— unusual_whales (@unusual_whales) April 15, 2022

“Twitter, Inc. today announced that its Board of Directors has unanimously adopted a limited duration shareholder rights plan (the ‘Rights Plan’),” a press release from the company said. “The Board adopted the Rights Plan following an unsolicited, non-binding proposal to acquire Twitter.”

“The Rights Plan is intended to enable all shareholders to realize the full value of their investment in Twitter,” it continued. “The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders.”

“The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal if the Board believes that it is in the best interests of Twitter and its shareholders,” Twitter said.

“Under the Rights Plan, the rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter’s outstanding common stock in a transaction not approved by the Board,” the company added. “In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.”

The new plan is set to expire on April 14, 2023.

This is a breaking story, please refresh for updates 

The Daily Wire is one of America’s fastest growing conservative media companies for breaking news, investigative reporting, sports, podcasts, in-depth analysis, books, and entertainment for a reason: because we believe in what we do. We believe in our country, in the value of truth and the freedom to speak it, and in the right to challenge tyranny wherever we see it. Believe the same? Become a member now and join our mission.