Let’s start with this. Elon Musk is more intelligent than the Twitter board members, so he’s most likely four or five steps ahead of them already.  Musk had to have known that his “take it or leave it” bid to acquire Twitter and pay investors $54 per share was going to be a tough sell, and he said on a Ted Talk Thursday night that he already has a Plan B if things don’t work out.  He didn’t reveal what the new plan was, but he has one. 

And he most likely will need to implement it.  

Twitter’s board of directors adopted a limited duration shareholder rights plan Friday, otherwise known as a “poison pill,” that essentially blocks a bid like Musk made on Wednesday. 

According to the board, this “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 is in place for an entire year until April 14, 2023.  There is a caveat – the board is not prevented from discussing acquisition plans or proposals with prospective bidders if they feel it is in the best interest of shareholders. 

Okay.  The ball is back in Elon’s court. The fun has only begun.

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