Twitter has formally replied to entrepreneur Elon Musk's offer to buy out the firm entirely. Twitter's board of directors has announced a new 'shareholder rights plan' to counter Musk's bid, the company's latest action. This is a big setback for the billionaire's ambitions to gain complete control of Twitter. This is referred to as a poison pill in the financial world. In layman's terms, the poison pill prevents hostile takeovers by granting some shareholders the ability to acquire additional stock if someone tries to gain control. The Rights Plan does not exclude the Board from negotiating with parties or approving an acquisition deal if the Board feels it is in Twitter's and its shareholders' best interests. Musk submitted a bid to purchase a 100% share in Twitter for $43 billion on Thursday.
