Elon Musk, CEO of giant companies such as Tesla and SpaceX, bought 9.2% of the social media giant Twitter with a surprise decision we passed. After that, it was announced that Musk would not join the board of directors, contrary to expectations. Yesterday, there was an even more interesting development in this regard, the famous businessman stated that he wanted to buy Twitter for 43.4 billion dollars.
After that, statements started to come from both sides. We mentioned that if Musk’s offer is not accepted, he has a ‘B’ plan, and Twitter will review the offer. In addition, in a news we shared with you this morning, we conveyed that the giant platform may use a strategy called ‘poison pill’ to discourage Musk from his offer. Now, there has been an important development in this regard.
Twitter’s board of directors decided to implement the ‘poison pill’ strategy against Musk
‘, also known as ‘limited shareholder rights’ plan to block Musk’s proposal. It was stated that with this strategy, the easy acquisition of the company will be prevented. So this strategy allows existing shareholders to buy additional shares at a discount. This makes the shareholder’s offer to buy all the shares more expensive.
According to the statements, this strategy implemented by many companies to prevent unwanted takeovers will continue until April of next year. In addition, the board stated that this strategy will come into effect when a person or institution acquires 15% or more of Twitter shares. In other words, the plan was implemented as a hedge against the possibility of Twitter increasing Musk’s shares.
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