Twitter re-examines Elon Musk’s $43 billion takeover bid
WHAT YOU NEED TO KNOW:
- Twitter is re-examining Elon Musk’s $43 billion takeover offer.
- Reports say a deal could be finalized within the week.
- Last week, Musk said he’d get $46.5 billion in financing to buy the platform.
Twitter is reportedly re-examining Elon Musk’s offer to purchase the platform and make it a private company, according to a report by The Wall Street Journal on Sunday. There would be a meeting on Sunday to discuss Musk’s proposal, the media outlet reported.
The report suggests that Twitter might give in to Musk’s offer.
The Tesla founder proposed paying $54.20 for each share of the social media network. His bid values Twitter at $43 billion. Musk now owns more than 9% of Twitter.
Twitter had been expected to refuse the offer, using a limited-duration shareholders’ rights plan. This strategy is known as the “poison pill” defense. It’s used by companies to ward off takeover attempts like the one facing Twitter. Poison pills make it nearly impossible for a potential buyer to obtain a majority of a company’s shares by making more of them available.
Twitter will be discussing Musk’s offer when it reports first-quarter earnings on Thursday, sources told the Journal.
Musk has raised questions in public about what is the future like for Twitter. The SpaceX founder repeatedly polled its 81 million followers about changes that could be made on the social media platform, which lags competitors Facebook, TikTok and Instagram in users and engagement.
Musk, who called the offer his “best and final,” indicated in a filing with the Securities and Exchange Commission that “If the deal doesn’t work, given that I don’t have confidence in management nor do I believe I can drive the necessary change in the public market, I would need to reconsider my position as a shareholder.”
Source: Fox Business