Twitter board adopts so-called 'poison pill' plan to block Musk from taking platform private

The plan was adopted by Twitter's board of directors
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Elon Musk
Tesla CEO Elon Musk in Grünheide near Berlin, Germany, Aug. 13, 2021
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Twitter's board of directors on Friday unanimously adopted a plan to stop Tesla CEO Elon Musk's plan to take private the social media company.

Under the plan, which is also referred to as a "poison pill," shareholders' rights will become exercisable if an entity, person or group acquires beneficial ownership of 15% or more of Twitter's outstanding common stock in a transaction not approved by the board, according to Fox News.

The board says the plan is "intended to enable all shareholders to realize the full value of their investment in Twitter" and will "reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders," the news outlet also reports.

On Thursday, the billionaire entrepreneur Musk offered to buy all of Twitter at a price that values the social media platform at more than $43 billion. Musk called the offer his "best and final," and said if it was not accepted he would have to "reconsider my position as a shareholder."

Last week, he bought a 9% stake in Twitter, making him the platform's largest shareholder.