[pas]

Hm, but in this concrete example Elon is also a shareholder, so he can buy for 25/share, right? And as more shares are being created the spot price on the market should drop, no?

Also, can the shareholders then sue the company (successfully? :)) for decreasing the price? ("everything is securities fraud" after all.)

[ben1040]

>Hm, but in this concrete example Elon is also a shareholder, so he can buy for 25/share, right?

Nope. The poison pill allows everyone but the one who triggered the provision to buy shares at a discount. From Twitter's press release:

>In the event that the rights become exercisable due to the triggering ownership threshold being crossed, each right will entitle its holder (other than the person, entity or group triggering the Rights Plan, whose rights will become void and will not be exercisable) to purchase, at the then-current exercise price, additional shares of common stock having a then-current market value of twice the exercise price of the right.

[lr4444lr]

Yes, but presumably enough of the other members with smaller purchasing power will still be each marginally incentivized to buy enough more such that it will dwarf Musk's motivation to outbuy any of them individually. At least that's how I understand it.