Twitter has no intention of being bought by Elon Musk. The board of directors of the social network has released a “poison pill” to stop the billionaire’s desire to be acquired. Will it be enough?

Twitter’s board of directors intends to fight to the bitter end to prevent Elon Musk from swallowing the social network whole. The Tesla boss, who recently became Twitter’s largest shareholder with just over 9% of the company’s capital, initially refused a seat on the board because it limited his ability to acquire as many shares as he wanted.

Limiting Elon Musk’s power at all costs

Then the richest man in the world played his trump card: an unsolicited takeover bid that will cost him $41 billion. But even if this takeover bid values Twitter generously, whose market capitalization is around 36 billion, several shareholders opposed the operation. And the board of directors has no desire to leave the reins of the company to Elon Musk.

That’s why the social network’s management has released what is known in financial jargon as a “poison pill” because of the “unsolicited and non-binding proposal to acquire Twitter”. This maneuver, also known as a “time-limited shareholder rights plan” is intended to block a hostile takeover by giving certain shareholders the right to buy more shares if an outside shareholder attempts to take control of the company.

Specifically, if Elon Musk reaches 14.9 percent of Twitter’s stock, other shareholders will be able to buy shares at a discount. The idea is to “dilute” the billionaire’s stake in the company, while giving other shareholders the ability to buy more shares. All this while increasing the price of the shares for Elon Musk…

This “poison pill” will make Twitter much more expensive for the businessman. Will he be able to afford to continue his assault? Answer in the next few days.