Twitter is considering a “poison pill” that would stop Elon Musk from upping his stake in the social media company, according to a Thursday (April 14) Wall Street Journal report that cited a source familiar with the matter.
The news came hours after reports that Musk — the world’s richest man — had made a $43 billion bid to buy Twitter. A poison pill is a defensive measure used by companies to prevent takeovers and acquisitions.
See also: Elon Musk Ignites $43B Takeover Bid for Twitter
Typically, it gives all shareholders — except for the takeover bidder — the right to buy more shares at a discounted rate, thus diluting the shares and making a takeover less enticing.
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Meanwhile, the website Teslarati reported that Musk claimed during an appearance at TED 2022 that he has a “Plan B” in case Twitter rejected his proposal, although he did not offer further details about what that plan might be.
Musk announced his intention to purchase Twitter in a filing with the U.S. Securities and Exchange Commission, saying he would purchase the company for $54.20 per share in cash, about 54% premium over the Jan. 28 closing price and a value of about $43 billion, calling the bid “best and final.”
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The billionaire and Tesla CEO said he wants to make Twitter a private company and turn it into a platform for “free speech,” according to a filing. The move follows Musk’s purchase of 9% of the company last week and his decision to decline a seat on its board.
Read more: Twitter Shares Skyrocket as Elon Musk Takes $2.9B Stake
Musk also said if his offer isn’t accepted, he might have to rethink his position as a shareholder in Twitter.
“If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder,” Musk said in the filing.
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