Twitter has launched a strategy to protect against the takeover of Elon Musk
Twitter’s board of directors has developed a plan to prevent Elon Musk from buying a social network. This was reported by The Verge.
The company announced a shareholder protection plan, better known in the financial world as the “poison pill”. The plan is a defense strategy that companies can use to protect against hostile takeovers.
According to the company, the strategy will run until April 14, 2023.
In essence, this approach allows shareholders to purchase additional corporate shares at a discount, effectively reducing the value of shares and making them more expensive for potential buyers.
Earlier, Musk bought a 9.2% stake in Twitter, and a few days later refused to join the company’s board of directors. After all, board members are prohibited from owning more than 15% of the company’s shares. However, even the shares that Musk has already bought are the largest package among all Twitter shareholders.
This week, the businessman announced an offer to buy Twitter for $41.4 billion in cash, for which the company began to take measures against the takeover.
Musk has not announced plans for Twitter, but experts believe that it involves easing the moderation policy of the platform, which has become a source of conflict in recent years.
In an interview at the TED conference in Vancouver, Musk said that his main motivation was to keep Twitter as a platform for free speech. “Twitter has become a de facto town square,” Musk told the crowd. “My strong intuition is that it is extremely important to have a public platform that is trusted and widely covered.”
