Twitter said Friday that its board of directors has unanimously adopted a “poison pill” defense in response to Tesla CEO Elon Musk’s proposal to buy the company for more than $43 billion and take it private
The move would allow existing Twitter shareholders — except for Musk — to buy additional shares at a discount, thereby diluting Musk's stake in the company and making it harder for him to corral a majority of shareholder votes in favor of the acquisition.The poison pill injects another twist intosurrounding the possibility of the world's richest person taking over a social media platform he described Thursday as the world's"de facto town square.
“They’re gearing up for a battle here with Musk," said Daniel Ives, an analyst for Wedbush Securities. “They also have to give themselves time to try to find another potential buyer." With about 82 million Twitter followers, Musk is both a prolific user of the platform and a vocal critic of the measures it has taken to restrict accounts that spread misinformation or amplify violent rhetoric and hate speech. He said Thursday he's opposed to permanent user bans — the most famous of which is Twitter's suspension of former President Donald Trump's account after the Jan. 6 Capitol riot.
Ives said Twitter's poison pill path is a predictable defensive maneuver but could be seen as a “sign of weakness” for the company on Wall Street.
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