Twitter Adopts Poison Pill Plan Againt Musk Takeover

Advertisement
Twitter Adopts Poison Pill Plan Againt Musk Takeover

In the latest twist in the Twitter-Musk spat, the social media network has implemented a “poison pill” to thwart a hostile takeover after Musk’s attempt to acquire the firm for $43 billion.

Also Read: Twitter DMs Could Get a Major Overhaul Following QuillChat Acquisition

Twitter’s Board of Directors unanimously approved the limited-term shareholder rights proposal. According to the proposal, if a person or group buys 15% or more of the company’s stock without the board’s consent, other shareholders may buy more shares at a discount.

Advertisement

After a year, the Rights Plan will be terminated.

Twitter said in a news release:

The Rights Plan will make it less likely for any entity, person, or group to gain control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or giving the Board enough time to make informed decisions and take actions in the best interests of shareholders.

Musk submitted an offer to the Securities and Exchange Commission (SEC) to purchase the firm in a letter to the Board on Wednesday.

Musk mentioned the potential of a hostile bid during his lecture at TED2022, which would enable him to circumvent the board and debate the offer directly with Twitter’s shareholders. “It would be totally indefensible not to bring this offer to a shareholder vote,” Musk subsequently remarked.

The poison pill is a “expected defensive strategy… [it] will not be perceived favourably by shareholders given the probable dilution and acquisition hostile move,” according to analyst Dan Ives.

Ives continued:

The Board is up against a brick wall, and Musk and shareholders are expected to dispute the poison pill’s legality in court. We think Musk and his team anticipated this poker play, which the Street will see as a show of weakness rather than strength.

Musk also claimed to have devised a ‘Plan B’ in the event that the offer was turned down, but he provided no additional information.

Apple
Huawei
Infinix
Lenovo
xiaomi
Vivo
Tecno
Samsung
Realme
Oppo
One Plus
Nokia

News

Vivo V30

Vivo V30 5G Officially Released in Pakistan with Triple 50MP Cameras, 120Hz AMOLED, and 80W Flash Charge

Vivo has officially announced the Vivo V30 5G in Pakistan, ushering in a new era of mid-range innovation, after a …

Samsung’s Galaxy Unpacked 2022 Will be Taking Place in the Metaverse

Samsung’s Galaxy Unpacked 2024 Will be Taking Place in the Metaverse

It appears that Samsung, the South Korean IT behemoth, will be the first to stage its biggest event of the …

Nokia Smartphones Will Last Even Longer Soon

Nokia Smartphones Will Last Even Longer Soon

Nokia’s parent company, HMD Global, has launched an extended warranty program for its smartphones. Nokia will extend your smartphone’s warranty …

The year’s top seller is the brand-new TECNO SPARK 20 Pro+!

TECNO Pakistan’s latest addition, the SPARK 20 Pro+, has emerged as the best-selling smartphone of the year. This formidable mid-range …

Tecno Pova 5 Pro 5G Announces a Massive Discount for Pakistani Customers, Cutting Prices by PKR 8,000

Tecno Mobile has implemented a significant price adjustment for the Tecno Pova 5 Pro 5G, specifically targeting the 8GB/256GB variant, …

Discount on Infinix Hot 30 & Smart 7 HD

Infinix aims to reignite interest in two of its previously overlooked smartphones by introducing substantial discounts on the Infinix Hot …

By month’s end, the Vivo V30 Pro will be revealed; key specifications and the launch date have been hinted at

The Vivo V30 Pro has officially announced its launch date for February 28th in Thailand. Positioned as the Pro variant …

Apple is Already Working on Next Gen M3 Chip for 2023

Apple is Already Working on Next Gen M3 Chip for 2024

The newest and greatest mobile SoC from Apple has only recently begun to appear in Mac products. The M2 processor, …

TECNO SPARK 20 Launches in Pakistan: Spark Beyond the Ordinary

TECNO, Pakistan’s leading smartphone brand, has recently introduced the highly anticipated SPARK 20, the latest addition to its renowned SPARK …

Tecno Pova 5 Pro 5G is seeking attention by offering a significant price reduction of Rs 6,000 in Pakistan

The Transsion brand recently unveiled a revised pricing structure for its Tecno Pova 5 Pro 5G, presenting a more compelling …

Advertisement

Leave a Comment