Facebook is in a very difficult position. It has been using its users personal data for years, and now the Cambridge Analytica scandal calls into question whether Facebook can trust its user’s privacy at all. With that said, there are some steps they could take to regain their customers’ trust if they wanted to – but it would be tough competition with Google+, which just so happens to have an open platform of APIs and not rely on data mining or targeted advertising like Facebook does.,
A “poison pill” is a provision in a contract that gives one party the option to purchase an asset from another party at a price higher than its market value. The term comes from the pharmaceutical industry and refers to a drug company’s practice of adding such provisions into their contracts with wholesalers and distributors, which allows them to buy back their own products if they believe that their competitors are about to overtake them.
Musk’s aggressive acquisition of the blue canary’s social network, which has been faced with rising opposition, has been greeted by the platform’s Board of Directors’ official rejection, which is ready to resist for a year with the poison pill procedure: let’s find out what it deals with jointly. 
In the last few hours, Twitter, which has been dealing with a hostile takeover attempt by billionaire Elon Musk, has communicated its intention to resist through a very common economic practice: at the moment, the reactions of the aspirant buyer, who is the largest single shareholder of the 280-character microblog, are unknown.
The “Musk-Twitter telenovela’s” first originality comes from the realm of analysts. Mark Kelley of Stifel Nicolaus has described the whole situation as a “circus” that will finish with either the billionaire who buys the social network or the same billionaire selling his 9.2 percent stake. In this case, however, Twitter’s shares would face a real downside risk, and as a result, the platform’s shares have been downgraded (in technical jargon: downgraded), in the name of a decision that, by raising doubts about the company’s creditworthiness, could have implications for the company’s cost of borrowing in the case of the issuance of securities.
Meanwhile, as more expressions of interest in the blue canary’s social network emerge (an offer could be made, according to what was formally communicated, also by Thoma Bravo, a private equity firm that last December managed something like 103 billion dollars in assets), Twitter’s board of directors has given substance to the statements of CEO Parag Agrawal, who argued in Thursday’s meeting with employees that the company would not be held harmed), Twitter’s board of directors has given substance to the statements of
In particular, since its legislation allows it to issue “preferred shares in blank check without prior permission,” the company has begun a process known as the “poison pill” in the economic sector, deeming Musk’s actions “unwelcome” and with the purpose of “fighting” them.
To dilute Musk’s shareholding, the BoD has established that if a subject (group or person) acquires at least 15% of the company’s ordinary shares available on the open market without the BoD’s permission (which would require “sufficient time to make informed judgments and take actions that are best in the interests of shareholders”), and without an appropriate shareholder reward, shareholders will be able to buy additional shares.
Additionally, the 364-day “poison pill” would bar shareholders from selling their shares, requiring Musk to file a takeover proposal that would allow shareholders to easily express their disapproval or support for the naturalized South African American billionaire’s offer. The poison pill method, according to Twitter, would not preclude the Board from accepting a potential takeover deal if it deemed it to be in the best interests of the shareholders and the firm.
The “poison pill defense” is a procedure that the social network uses to resist the takeover. The company has been using this procedure for years and it is still successful.
Frequently Asked Questions
How does the poison pill defend against a takeover?
What is a poison pill in a takeover?
A: A poison pill is a provision in the companys charter or bylaws that allows shareholders to force management to sell off all of their holdings if they are not satisfied with how it operates.
What does poison pill mean Twitter?
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