According to various reports, Twitter has begun conversations with Elon Musk about his $43 billion deal to buy the social media business.
The two parties met on Sunday to discuss Musk’s proposed proposal, and an agreement may be reached as soon as this week, according to The Wall Street Journal.
Twitter has implemented a poison pill takeover prevention tool that can make acquisition attempts exorbitantly expensive. According to The Wall Street Journal, which first announced that negotiations were underway, the board chose to negotiate after modifying Mr Musk’s proposal to prove that he had secured the funds.
Elon’s Offer to Twitter
Musk claimed on April 14 that he owns 9.2% of Twitter and declared a plan to buy the social media network for $ 43 billion (£ 33.5 billion).
He said the money came from Morgan Stanley and other banks in a letter submitted with US securities authorities last week and was supported in part by his massive investment in electric vehicle companies. I’m one of those people.
Twitter has yet to respond.
Mr Musk has stated that he wants to acquire Twitter because he believes it is not living up to its promise as a free expression medium.
He has recommended a variety of reforms to the firm in recent weeks, ranging from loosening content restrictions – such as the ones that terminated former President Donald Trump’s account – to resolving the platform’s issues with phoney and automated accounts.
According to Forbes, Mr Musk is the wealthiest person in the world and has a fortune of about $ 279 billion (£ 217.2 billion).
But much of his money is tied to Tesla’s stock, and according to FactSet, he owns about 17% of the company, worth more than $ 1 trillion (£ 778.5 billion). It is unknown how much cash he has.
Musk had previously made a mysterious reference to the possibility of an acquisition, directly appealing to shareholders to buy shares above-market prices, thereby bypassing Twitter’s board of directors.
Musk has set up three holding companies that appear to be part of his plan to take over Twitter. For example, Tesla has gained more than 21,000% in the last decade, surpassing its market capitalization of $ 1 trillion, despite being the most heavily discounted stock in history.
“Twitter may be extraordinary. I’m going to unlock it,” he said. Musk has transformed Tesla and SpaceX from start-ups to leaders in the automotive and space industries, respectively. SpaceX is currently the second most valuable private company with a $ 100 billion valuation. And its tunnelling company, The Company, has completed a $ 675 million round of funding worth $ 5.675 billion.
Now let’s see what will happen as the next line of action by the Twitter board.
