As we've extensively covered here at Townhall, the Left has been freaking out nonstop over Elon Musk's $43 billion offer to buy Twitter. As it turns out, Twitter doesn't appear to be so happy either. As Lucas Manfredi reported for FOX Business on Friday afternoon, the social media platform's board of directors voted unanimously to adopt a limited duration shareholder rights plan.
As Manfredi wrote:
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. In the event that the rights become exercisable, shareholders will be entitled to purchase additional shares of common stock at a discounted rate.
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 plan will expire close to one year from now, on April 14, 2023. However, as Manfredi also noted, it "does not prevent Twitter's board from engaging with parties or accepting an acquisition proposal if they believe it is in the best interest of the company and its shareholders."
Rebecca Klar, reporting for The Hill referenced a press release from Twitter, also noting that the social media platform said it would not be commenting further.
"The Rights Plan 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 press release said.
Twitter employees have previously whined about Musk's involvement in the social media platform thus far. As Tristan Bove reported for Fortune, they had been given Monday off and minimal meetings throughout the week for their "focus week." As Bove wrote, "even the most diligent employee at Twitter must have had a hard time focusing on work during the latest developments, and workers used their own platform to voice their frustrations."
"Poison Pill" is trending on Friday on Twitter as a result of the move.