Will Twitter's 'poison pill' be enough to stop Musk?

Sindujaa D N

Twitter has decided to implement a shareholder's rights plan, or 'Poison Pill', a corporate ploy to avoid falling into the hands of Musk.

World billionaire Elon Musk's rating of popular social media site twitter and its aftermath are hot topics in the tech world. Musk's dramatic decision came on april 14.

Elon Musk moves to acquire twitter Musk's move is to buy the entire share of Twitter. Musk has been threatening to declare no confidence in management if the current offer is not acceptable and to consider abandoning the shares he currently holds.

But twitter shareholders say they have not yielded to Musk's threats. Twitter's board of directors has launched new efforts to prevent the world's richest man, Elon Musk, from taking over Tesla. twitter has decided to implement a shareholder's rights plan, or 'Poison Pill', a corporate ploy to avoid falling into the hands of Musk.

Elon Musk, which currently owns 9.1 percent of the company, aims to gradually reduce its stake and make the acquisition more expensive. The 'shareholder rights plan' is the last resort adopted to prevent the 'hostile takeover' method of trying to acquire a company when it is not interested. 

In many lands, spies and soldiers have been known to carry poison in their hands when they are sure that they will be captured by the enemy. The 'cyanide' tactic used by the tamil Tigers is another version of this. 

The 'Poison Pill' method is when a person's shareholding exceeds a certain level and he tries to buy the company by force. These stocks will be cheaper. That way people will buy more shares and he will have less percentage of the total share in the company.

But like the titanic disaster, Elon Musk described such an attempt as a self-defeating event. Meanwhile, the main question arises. What will Musk do if his plan to take over twitter fails? 

What is Plan B?

In a recent interview with Ted curator chris Anderson, Musk revealed the problems and possibilities of his twitter acquisition plan. Musk says he bought twitter to realize his dream of a social media with freedom of speech. Musk views twitter as a platform for people to freely comment. Therefore, he says, acquiring twitter is never a for-profit transaction. Musk said his final offer was for Twitter.

But in the conversation, Anderson asks what the plan is if the mission fails to buy Twitter. There are many interpretations of Musk's answer to this. Musk replied that he had another plan in mind. Some Western media outlets are sharing the new interpretations that have come through. Interpretations are that Musk will radiate a new social media platform. Anyway wait a minute to see if twitter will get into Musk's hands.

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