The board of directors under Twitter have now taken newly devised steps in limiting Elon Musk's hostile takeover attempt, which was initially set in motion on Thursday morning, Apr. 14. In a press release published on Friday, Apr. 15, Twitter's board of directors announced the induction of a "limited duration shareholder rights plan," wherein investors will seek to "realize the full value of their investment in Twitter."
This process is most notably coined a 'poison pill." Despite its rather egregious terminology, derived primarily from the finance industry, a poison pill measure gives the shareholders of a particular company in the throes of a hostile takeover the opportunity to buy more of the company's stock to impede the process of bullish outsiders, in this case, Musk.
Twitter's poison pill measure will stay operational for one year. The board likewise noted filing opportunities with the Securities and Exchange Commission (SEC) but said Form 8-K documents are unavailable as of writing.
Although much of the company's actions have seemingly been anti-Musk, the social media site notes withIn its press release the following:
"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."
While Musk has yet to take any action following Twitter's announcement, this does lend credence to the idea that he could still make a more generous offer for the social media site. The CEO has remained bullish in his endeavors to rework Twitter's moderation policies, citing the necessary intervention of free speech considerations made aplenty in his letter to shareholders sent Thursday morning.
The rollercoaster ride of events began in early April, when news broke that the Tesla CEO purchased a majority stake in Twitter, only to find himself in the crosshairs as the board sought to sue Musk for failing to provide his 5% stake. Twitter CEO Parag Agrawal initially voiced optimism at the opportunity of having Musk join the Twitter board, even going so far as to relay to employees that Musk's offer was still being considered in a 25-minute Q&A on Thursday.
Taking Twitter private at $54.20 should be up to shareholders, not the board
— Elon Musk (@elonmusk) April 14, 2022
The Tesla CEO himself appeared amidst a TED conference on Thursday evening in Vancouver, wherein the executive maintained his talking points on free speech:
"This is not a way to sort of make money. My strong intuitive sense is that having a public platform that is maximally trusted and broadly inclusive is extremely important to the future of civilization. I don't care about the economics at all."
During the same interview, Musk explained a supposed backup plan in case all went awry. The Tesla executive did not elaborate on what this may look like in full effect, but did generate a ton of laughter in the crowd.
