Elon Musk has offered to buy 100% stake in microblogging site Twitter. That’s why the rich man has offered 43 43 billion. Tesla’s Chief Executive Officer (CEO) Elon Musk is making headlines these days by offering to buy micro-blogging site Twitter. Twitter officially responded to the billionaire’s offer on Friday.

Twitter’s board of directors has devised a strategy to block Musk’s offer. Twitter’s board of directors has adopted a limited-term shareholder rights plan called the “poison pill”. This could make it difficult for Elon Musk to acquire the company. Which is being seen as a big setback for Elon Musk’s efforts. The Twitter board said in an official press release that it had adopted the plan following a legally non-binding proposal to acquire Twitter.

What is the poison pill strategy?

‘Poison peel’ is a term used in the business world. It’s actually a strategy of sorts. The Twitter board has adopted the term to thwart Elon Musk’s attempts to buy Twitter. With this, it will not be impossible to buy Elon Musk’s Twitter, but it will definitely be very expensive.

The Shareholders Rights Plan will be implemented only if an individual, group or organization attempts to purchase 15 percent of Twitter’s outstanding common stock. Allen currently holds 9 percent of the stock. The Twitter board said the rights plan would reduce the possibility that any organization, individual or group could attempt to control the company from the open market without paying a reasonable control premium to all shareholders. According to the board, this scheme will be applicable till 14 April 2023.

Let us tell you, Elon Musk, the world’s richest man, currently owns more than 9% of Twitter and is the largest shareholder of the company. Musk sent a letter to Twitter offering to buy 100 percent of the company. Elon Musk has offered to buy Twitter for ₹43 billion. Musk was previously offered a board seat at the social media company, which Musk declined. It was only after the board turned down the seat offer that there was speculation that Musk was preparing to increase his stake. However, he surprised everyone by offering to buy the entire stake.

On the other hand, Twitter’s shareholder and Saudi Arabia’s Prince Al Waleed bin Talal Al Saud has also turned down Elon Musk’s offer. “I don’t think the price of a share of Twitter proposed by Elon Musk is close to its intrinsic value given the company’s growth prospects,” the Saudi prince wrote in a tweet. The Prince adds: “As one of the largest and oldest shareholders of Twitter, Kingdom Holding Company and I decline this offer.