Twitter introduces a ‘poison pill’ in response to Elon Musk’s takeover attempt.

Twitter’s board of directors said Friday night that the “poison pill” protection would be used to stop Tesla CEO Elon Musk from taking over the company. In the wake of an “unsolicited, non-binding bid” for Twitter, the company’s Board of Directors unanimously approved a limited-term “rights plan,” also known as the “Rights Plan.”

People who own the company will be able to buy more shares if Musk wants to take it over. People who work for Twitter say that the “Rights Plan” will make it less likely that an organization or person will get control of the microblogging platform “through open market acquisition without paying all shareholders an appropriate control premium or giving the Board enough time to make informed decisions.”

“The rights will become exercisable under the Rights Plan if an entity, person, or group owns 15% or more of Twitter’s common stock in a transaction that the Board did not approve,” Twitter’s board said.

For one year, this plan will be in place. It will end on April 14, 2023.

On Thursday, Twitter CEO Parag Agarwal told employees that the company’s board will not be “held hostage” by the news that Tesla CEO Elon Musk wants to buy the company. This report comes just a few days later. Twitter’s board of directors is also considering the offer from Tesla CEO Elon Musk. They will decide “in the best interests of our shareholders,” he said.

Before the meeting, Musk said it would be “totally indefensible” not to put this offer to a vote. During an interview, he said that the people who run the company, not the board of directors, are in charge of it, not him.

Musk wants to buy Twitter for $54.20 a share in cash, which would value the company at about $43 billion.