Twitter Adopts 'Poison Pill' Defense In Response To Musk Takeover Bid

The plan would take effect if Musk's Twitter stake grows to 15%, by allowing shareholders to buy additional shares at a discount — diluting his stake.

Twitter said Friday that its board of directors has unanimously adopted a “poison pill” defense in response to Tesla CEO Elon Musk’s proposal to buy the company and take it private. Taking Twitter private at $54.20 should be up to shareholders, not the board

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The move would allow existing Twitter shareholders to buy additional shares at a discount, thereby diluting Musk's stake in the company and making it harder for him to corral a majority of shareholder votes in favor of the acquisition.