Entrepreneur Elon Musk, the wealthiest man in the world, is giving the ‘blue check’ crowd nightmares with his bid to complete a hostile takeover of Marxist-controlled Twitter.
The social media company’s board of directors today took action to prevent this development.
The “poison pill,” as it’s called in corporate terms, gives Twitter’s existing shareholders time to purchase additional shares at a discount, thus diluting Musk’s ownership stake, reported Axios.
The move is designed to make it difficult for anyone, including Musk, to build a stake worth more than 15% of the company.
“The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders,” the company added.