Twitter board announces poison pill measure to block Musk buyout

Illustration by Kristen Radtke / The Verge; Getty Images

The new shareholder rights plan was issued by the board of directors to block Musk's attempt to take the company private.

The company's board of directors noted in a press release that the plan was adopted following a proposal to acquire the company.

The finance world uses a poison pill to block hostile takeovers by giving certain shareholders the right to purchase more stock.

The plan suggests that the board of the company will fight Musk's attempt to take ownership of the company. The company was still evaluating Musk's offer.

The plan was detailed in a filing to the US Securities and Exchange Commission, but it was not available as of press time. The plan will be in effect for a year.

On April 4th, the SEC revealed that Musk had become the company's largest individual shareholder. Musk then resigned from the company's board. Musk would not have been allowed to acquire more than 15 percent of ownership as a board member. Musk filed an offer to take over the company.

Musk criticized the possibility of board action against the deal, saying it would be indefensible not to put this offer to a shareholder vote.

The platform's moderation policy has become a source of conflict in recent years, and it is widely believed that Musk will loosen it.

Musk told the crowd at the conference that his main motivation was to preserve the free speech position of the platform.

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