Twitter's 'Poison Pill' to block Elon Musk's hostile takeover bid I Explained

After the world's richest man, Elon Musk's hostile effort to take over Twitter, the microblogging site has adopted a 'poison pill' plan to shield itself from Musk's takeover. The Twitter board has issued a new 'shareholder rights plan' to block Musk' proposed $43 billion buyout offer. The plan is exercisable if a party acquires 15% of the stock without prior approval, lasting for one year. Poison pill is a financial device that companies have been wielding against unwelcome suitors for decades. More details about poison pill in this report.