EXPLAINER: What Twitter's 'poison pill' is supposed to do
ABC News
Twitter is trying to thwart billionaire Elon Musk’s takeover attempt with a “poison pill” — a financial device that companies have been wielding against unwelcome suitors for decades
Twitter is trying to thwart billionaire Elon Musk's takeover attempt with a “poison pill" — a financial device that companies have been wielding against unwelcome suitors for decades.
WHAT ARE POISON PILLS SUPPOSED TO DO?
The ingredients of each poison pill vary, but they're all designed to give corporate boards an option to flood the market with so much newly created stock that a takeover becomes prohibitively expensive. The strategy was popularized back in the 1980s when publicly held companies were being stalked by corporate raiders such as Carl Icahn — now more frequently described as “activist investors."
Twitter didn't disclose the details of its poison pill Friday, but said it would provide more information in a forthcoming filing with the Securities and Exchange Commission, which the company delayed because public markets were closed Friday.
