Twitter adopts 'poison pill' to fight Musk's $43-billion takeover bid

Twitter board voted unanimously to adopt rights plan

Twitter Inc (NYSE: TWTR) on Friday adopted a limited-duration shareholder rights plan, often called a “poison pill,” to protect itself from billionaire Elon Musk’s $43 billion cash takeover offer.

The social media company said that the rights plan would allow other shareholders to purchase additional Twitter shares at a discount if any person or group acquires beneficial ownership of at least 15% of the company’s outstanding common stock without the board’s approval.

The poison pill tactic is a defense strategy used to discourage a potential hostile takeover.