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Twitter plans “poison pill” if Musk tries takeover


A Twitter login screen in 2021 Associated Press/Photo by John Raoux

Twitter plans “poison pill” if Musk tries takeover

The social media giant’s board of directors will make defensive moves if Elon Musk tries to increase his stake in Twitter from 9 percent to 15 percent or more. The billionaire and CEO of Tesla announced Thursday he wants to buy the publicly traded company outright for $43 billion. Musk wants to take Twitter private and reform its censorship practices, a move he says would protect free speech.

How would Twitter’s plan work? It would allow existing Twitter shareholders (except Musk) to buy additional shares at a discount, thereby diluting Musk’s stake in the company and making it harder for him to gain support for his acquisition from a majority of shareholders. The plan is set to expire next year.

Dig deeper: Read Jerry Bowyer’s column for WORLD Opinions about how Musk could transform Twitter.


Lynde Langdon

Lynde is WORLD’s executive editor for news. She is a graduate of World Journalism Institute, the Missouri School of Journalism, and the University of Missouri–St. Louis. Lynde resides with her family in Wichita, Kan.

@lmlangdon

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