The company is taking its prime steps to fight back against the company.
Twitter is adopting a so-called "Poison Pill" strategy that might assist the company from Musk's acquisition of more shares and give it the time to look for alternatives. Thursday.
Pharmaceuticals are common in the entertainment industry, particularly among Twitter's size. This action is a defense against takeover attempts that reduce share prices to reduce the holdings of new, hostile shareholders.
The plan comes as part of Musk's takeover offer, which was disclosed Thursday. The "limited duration" plan will expire in one year on April 14, 2023, and will go into effect if a shareholder acquired more than 15 percent of the company in a contract that was not approved by the board.
The Rights Plan does not prevent the Board from engaging with parties or accepting an acquisition proposal, according to Twitter.
Musk's offer sparked interest in Musk Twitter's largest outside shareholder in the past few months.
After the purchase offer was made, Musk appeared at the TED conference in Vancouver, where he explained his vision for the company.
"It's just important that people have the reality and the perception that they are able to speak freely within the boundaries of the law," he said, adding that he wanted to develop an open-source algorithm. "This is not a way to make money, but my strong intuitive conviction is that having a public platform that is maximally trusted and broadly inclusive is absolutely vital to civilization's future, but I do not care about the economics at all."
Twitter informed Twitter that Musk would join the board last week, and in doing so agreed to a "stand-still" agreement that would limit his ability to acquire more than 14.9 percent of the company. On Saturday, Musk informed Twitter that he had changed his mind and did not intend to join the board.
Parag Agrawal, CEO of Twitter, claimed that Musk might pursue an aggressive strategy, stating that "there will be distractions ahead, but our goals and priorities remain unchanged. No one else's decisions and actions are in our hands."
Despite his remarks, he said the company would continue to be open to Musk's input. Agrawal described the board's obligation as a potential reason that Musk decided not to join the board.
In a text message to Twitter board chair Bret Taylor, Musk suggested that if the company did not agree to his offer, he would consider selling his share.
"My offer is my best and final offer, and if it is not accepted, I'd need to reconsider my position as a shareholder," he said.
Musk said during a TED conference on Thursday that he isn't sure I will be able to purchase it, but he added that he had a "Plan B" option if his offer was rejected.
If Twitter's board wants to rid Musk of his meddling, then that may be the most enjoyable option, and the poison pill may be the tool to do it.