Stockholder rights plans, also known as "poison pills," have made a comeback amid the novel coronavirus pandemic as companies devise defenses against hostile takeover attempts from investors looking to take advantage of weakened stock prices.
Radio and streaming audio giant iHeartMedia unveiled one on May 6, joining other companies in the broader entertainment space such as theme park operator Six Flags Entertainment and in-flight entertainment provider Global Eagle Entertainment. "Poison pills" are a defensive measure that gives existing shareholders the right to buy added stock at a discount, making a takeover attempt more expensive and difficult.