Twitter’s “poison pill” plan will only go into effect if Musk (or any other would-be purchaser) acquires more than a 15% stake in the company. In theory, the hostile investor’s cash would eventually run out, but this may be more complicated in practice when contending with the richest man in the world. Under the “poison pill” plan, Musk would have to spend an increasing amount of money to maintain a majority stake in the company. Will Twitter’s plan actually stop Musk’s purchase? In this limited-duration shareholder rights arrangement, existing shareholders can buy stocks at a substantial discount in order to dilute the holdings of new investors and protect its ownership. To prevent such a buyout, Twitter has implemented a relatively rare method called a “poison pill” plan.

“As a public company, Twitter has always been ‘for sale’,” he said. Jack Dorsey, Twitter founder and former CEO, noted in a tweet on Friday that such surprise purchases have always been a risk for the company. While Twitter seems poised to reject the deal, Musk could still buy up additional shares of the company on the open market, or win over shareholder support in the case of a vote. Musk then offered to purchase Twitter outright at a price of $54.20 a share – 38% higher than Twitter’s 1 April close, the last trading day before his stake in the company was made public – stating this was his “final offer”. (Shortly after, Vanguard group surpassed him, now owning 10.3% of the company.) On 4 April, Musk revealed in a filing to the US Securities and Exchange Commission (SEC) he had bought up almost $3bn in Twitter shares, making him the platform’s largest shareholder with at 9.2% stake. So what next? Here are some of the biggest remaining questions about Musk’s surprise acquisition attempt.

“If they simply say no to his offer, what is he going to do?” “Before they go through a lot of time, trouble, and expenses to respond to Musk, Twitter is likely trying to decide how serious he is,” she said.

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