Twitter Takes the Poison Pill

Twitter’s board voted to stop Elon Musk by any means necessary

Twitter decided to prevent Elon Musk from buying the company.

They took what in finance circles is called a “poison pill.” Or, Twitter’s Board of Directors adopted a limited duration shareholder rights plan.

Shareholders may exercise those rights if a person or entity named Elon Musk buys fifteen percent or more of Twitter’s common stock, or if the transaction is unapproved by the Board.

If that person’s name is Elon Musk, trust me when I tell you that it will be unapproved by the Board.

If Musk buys more than fifteen percent of Twitter, Twitter shareholders can purchase common stock twice the exercise price.

The poison pill lasts for a year. Saudi Arabia voted against Musk’s tender offer with its share.

But Musk wants Twitter.

He offered $54.20 and has already purchased a little more than nine percent of the social media company. Musk is the world’s richest man and told the New York Times he does not care about the deal's economics.

Musk wants Twitter because, for want of a better location, Twitter is where human beings of all sorts can talk about it with one another.