Twitter Looks To Be Fighting Elon Musk's Offer As It Prepares "Poison Pill" Plan

thegamer.com:

Yesterday, Elon Musk made an offer of $43 billion for a controlling stake in Twitter, essentially offering $54.20 per share. The site hasn't responded publicly, but told employees that it will consider the offer "in the best interest of our shareholders."

CEO Parag Agrawal spoke to employees last night, discussing anxieties around Elon Musk's buyout and the prospect of Twitter going private. During the 25-minute Q&A, which was documented by The Verge, Agrawal said that the decision is up to the board and that it's a "rigorous process". This means that they can't give a strict deadline on when they'll make a decision.

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Another growing anxiety is layoffs - employees are worried about their job security in lieu of Elon Musk buying out the company. Agrawal addressed these concerns, saying that layoffs would not happen on an individual case-by-case basis. He also added that it's too early to discuss employee stock options if Twitter is made private.

However, Twitter's largest shareholder is reportedly putting up a fight while the board has plans to use a "poison pill" strategy. If you don't know, it's an attempt to thwart a hostile takeover by pushing shares out onto the market en masse, making them far harder to acquire at once. It would take a lot more work for Musk to take control of the company should this poison pill action be taken.

Right now, Twitter is basing its response to Elon Musk on the shareholders, but Musk has a "plan B" if Twitter does reject his offer in the end. It's clear that he is set on taking over the company and gaining that controlling stake, but it isn't clear what Twitter's response will be in the coming weeks.