In April 2022, Elon Musk bought a ~9% stake in Twitter. In response, Twitter's board adopted a shareholder rights plan--more commonly known as a poison pill. In this video, I explain what a poison pill, how it works, and why companies use them.
If you want even more information about the poison pill, my book Mergers and Acquisitions has an extended treatment. https://amzn.to/38Pkj06
How do I know what I'm talking about? I am the William D. Warren Distinguished Professor of Law at UCLA School of Law, where I currently teach Business Associations, Advanced Corporation Law, and Mergers and Acquisitions. (This is not an official UCLAW video and nothing herein should be attributed to UCLA or the law school. My title is used solely for purposes of identification.)
I have written over 100 law review articles which have appeared in such leading journals as the Harvard Law Review, Virginia Law Review, Northwestern University Law Review, Cornell Law Review, Stanford Law Review, and Vanderbilt Law Review. I have also written 20 books, including seven in multiple editions. My most recent books include: Advanced Corporation Law (Foundation Press, 2020); Outsourcing the Board: How Board Service Providers Can Improve Corporate Governance (Cambridge University Press, 2018) (with M. Todd Henderson); Business Associations: Cases and Materials on Agency, Partnerships, and Corporations (Foundation Press, 10th ed., 2018) (with Klein and Ramseyer); Mergers and Acquisitions: A Transactional Perspective (Foundation Press, 2017) (with Iman Anabtawi).
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