Twitter is restricting the ability of Elon Musk to raise his stake in the company by adopting a “poison pill.” Can this strategy stop him from taking over the social media platform?

On Friday, April 15, Twitter gave the “poison pill” the go-ahead in a bid to stop Elon Musk from raising his stake in the company. Meanwhile, a buyout firm is challenging his $43 billion (about INR 3,28,250 crore) takeover bid for the company.

A technology-focused private equity firm, Thoma Bravo had over a whopping $103 billion (about INR 7,86,250 crore) in the form of assets under management as of the end of December.

Twitter Adopts Poison Pill To Stop Elon Musk From Taking Over

Now, people familiar with the matter claim that Thomas Bravo is prepping to explore the possibility of creating a bid. However, it is unclear how much amount Thomas Bravo is willing to offer.

Aside from this, the sources cautioned that such a rival bid is highly unlikely to even materialize. On Friday, Twitter announced that it has adopted a poison pill that would restrict people from amassing over 15 percent stake in the company by selling more shares to other shareholders at a lowered price.

Furthermore, this poison pill, which was earlier referred to as a shareholder rights plan, will be active for 364 days. To recall, Musk made his bid on Wednesday by sending a letter to the Twitter board, as per a report by the Times of India.

After his TED talk on Thursday. Musk teased a potential hostile bid that would involve him bypassing the board and putting the offer directly to its shareholders.