Hacker News Reader

Do you really think these poison pills are not thought through?

Yes, they are newly minted shares.

The poison pill applies to any person, entity or group. If Elon has other shell companies, or even just people acting in concert with him, they are all excluded from the right to buy. They all get diluted.

View on HN

But then he can just keep on buying those shares secondhand, right? (Or, since they’re fungible, “buy more shares”.)

Doesn’t that assume that Twitter actually knows that Elon is behind them? They could simply be other investors who have already decided to sell to Elon.

Sure, but that would be illegal and won’t happen. The SEC has filing requirements and the poison pill, if triggered, probably requires certain representations to be made (e.g. the buyer of the newly minted shares does not hold more than X% when aggregated with anyone they are acting in concert with).

Reply on news.ycombinator.com