The Twitter Board doesn’t want Elon Musk buying the entirety of the company and they want to fight. So the board members just approved the limited duration, shareholder rights plan, and it is going to be in place for one year starting today. These rights will come into play if any single entity acquires at least 15% of Twitter’s common stock without the board’s approval, then certain shareholders buy more stock, which floods the market with new shares to dilute other investors’ holdings, which is called a poison pill strategy designed to stop a hostile takeover attempt.

A while back, Elon Musk became Twitter’s largest shareholder when it emerged that he quietly took up to one nine points 2% stake in the company, after which he was offered a seat on the Twitter board. And if he had accepted, he would not have been allowed to build up an ownership stake of more than 15%. After which, Elon Musk did turn down the board seat and then made an offer to buy the entire company for nearly $43 billion. The company said that this would reduce the likelihood that any entity, person, or group gains control over Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the board sufficient time to make any informed judgments and take actions, in the best interests of the shareholders.

In basic words, this move will make it very hard for Elon Musk to take his buyout offer directly to shareholders and acquire their stakes. Musk then claimed on his offer that Twitter has extraordinary potential and that he would unlock it, during a TED talk hours after proposing, Musk said that the Twitter algorithm should be open source so anyone can see there’s no sort of behind-the-scenes manipulation. He also said that he was on the side of having less moderation and expressed reservations about issuing permanent bans on users that break the rules on Twitter.