Negotiations for a Twitter takeover deal with Elon Musk underway: reports
Twitter’s 11-member board met on Sunday to consider billionaire Elon Musk’s $43 billion takeover bid for the social media company, according to reports.
Musk “has wooed numerous shareholders of the social media company with financing details on his $43 billion takeover bid,” according to Reuters which cited people familiar with the matter. “The company’s decision to engage with Musk…does not mean it will accept his $54.20 per share offer,” according to Reuters. “It does mean, however, that Twitter is now investigating whether a sale of the company to Musk is possible on attractive terms.”
The situation “remains fluid and rapidly changing,” according to the New York Times. The newspaper also said talks could come down to the offer price. Musk’s offer represented a significant premium to the company’s stock price at the end of January, but still represents a significant discount to the stock’s valuation at more than $60 each for a large part of last year.
Variety contacted Twitter for comment.
Musk owns a more than 9% stake in Twitter. It has put together a $46.5 billion financial package, made up of its own assets and backing from Morgan Stanley and other companies, for its bid, according to a regulatory filing. This includes $13 billion in debt financing, $12.5 billion in loans against its stake in Tesla, with $21 billion in equity financing expected to be added by Musk.
On April 14, Musk – the CEO of Tesla and SpaceX and the richest person on the planet – offered to buy Twitter for $43 billion in a hostile takeover bid, offering $54.20 a share to the social media company. The next day, Twitter adopted a “poison pill” plan to ward off a possible hostile takeover, designed to prevent any person or entity from acquiring more than 15% of the company’s equity by buying shares on the market. free.
On Sunday, Musk, who has 83.2 million Twitter followers, tweeted that he was “moving” “from mocking Gates for shorting Tesla while claiming to support climate change action.”
(to mock Gates for bypassing Tesla while claiming to support climate change action)
— Elon Musk (@elonmusk) April 24, 2022