Twitter could move closer to a deal with Elon Musk.
The board of social media services met on Sunday morning to discuss Mr. An unsolicited bid of $ 46.5 billion to buy Musk’s company, after it began lending for its offer last week, said two people familiar with the situation. Financing was a turning point for how Twitter’s board views Mr. Musk’s bid of $ 54.20 per share enables the company’s 11 board members to seriously consider its offer, people said.
The Twitter board planned to meet with Mr. On Musk’s side on Sunday, people spoke on condition of anonymity because they were not authorized to discuss confidential information. Those details include a timeline for closing any potential deals and any fees that would be paid if the agreement was signed and then separated.
Any deal is far from certain, but Twitter’s board wants to join Mr. Musk, the richest man in the world, represents a step forward. Mr. Musk, who has more than 83 million followers on Twitter and began accumulating shares in the company earlier this year, announced on April 14 his intention to buy the company and privatize it. But his proposal was quickly scrapped by Wall Street because it was unclear whether he could come up with the money to make the deal. Twitter also adopted a “poison pill”, a defensive tactic that Mr. Musk from accumulating more stock of the company.
Mr. Musk updated his proposal last week, forcing him to take his bid more seriously on Twitter. In a securities filing released on Thursday, Mr. Musk detailed how he borrowed money from investment bank Morgan Stanley and a group of other lenders who were offering 13 billion in debt financing, as well as another .5 12.5 billion loan against his stock at Tesla, the electric car maker he operates. . They were expected to add about $ 21 billion to equity financing.
Now the highly unlikely deal that appeared could be more likely. Twitter and Mr. Musk is fluid and fast moving, said people familiar with the situation.
One Twitter does less than comment. In previous public statements, the company said its board “continues to review carefully, comprehensively and deliberately to determine whether to act in the best interests of the company and all Twitter shareholders.”
Mr. Musk did not respond to a request for comment. The Wall Street Journal previously reported on Twitter’s increased receptivity to Mr. Musk dialect.
Wall Street was likely to see the openness of Twitter’s board for Mr. Dan Musk, an analyst at Wedbush Securities, wrote in a note that “Musk’s bid as a start for Musk’s end as a public company for Twitter is probably on the way to acquiring the company now, unless another bidder comes into the mix.” Sunday.
Mr. The day before he began investing in the company in late January, Musk’s offer to Twitter was 54 per cent higher than the share price. But Twitter shares traded more than Mr. Musk’s bid for most of last year.
Some analysts have said that they expected Twitter’s board to accept only one bid, valued at at least 60 per share. Twitter’s share price rose above $ 70 per share when the company announced its revenue doubling targets last year, but has fallen to around $ 48 since then as investors questioned its ability to meet those targets.
Mr. Musk, 50, has made it clear that he sees many flaws in Twitter as a social media service. He said he wanted to “transform” the company into a “platform for free speech around the world” and that it needed a comprehensive overhaul of its products and policies.
Mr. Musk has tried to negotiate with Twitter using the service, threatening in several tweets that it would take its bids directly to the company’s shareholders in what is being called a “tender offer”. A tender offer is an unfavorable maneuver in which an outside party prevents the company’s board from asking shareholders to sell their shares directly to them.
He has also worked irregularly on the platform, expressing concern about how he could manage it if he were in charge of the service. On Saturday, Mr. Musk Billionaire targets Bill Gates, Saying Shri. Gates took a “short” position on Tesla’s stock, which meant that Mr. Gates was betting that the carmaker’s shares would fall. On Sunday Mr. Musk tweeted that he “Going onMaking fun of Mr. Gates.
What’s going on with Elon Musk’s bid for Twitter?
Offer. Elon Musk, the world’s richest man, made an unsolicited bid of over $ 43 billion for a social media company. Mr. Musk said he wants to make Twitter a private company and wants people to be able to talk more freely on the service.
However, Mr. Musk maintains cordial relations with some of the top members of Twitter. Over the weekend, Mr. Musk traded friendly tweets with the company’s co-founder and board member Jack Dorsey. Mr. Dorsey resigned as Twitter’s chief executive in November and will leave the board soon.
Both men share similar views on cryptocurrency and on promoting more free speech online. When Mr. Musk has been flirting for a while, joining Twitter’s board this month. Dorsey Tweeted“I’m really glad Elon is joining the Twitter board! He cares deeply about our world and the role of Twitter in it. “
On Friday, Block, a financial services company led by Mr. Dorsey revealed that he had changed his title from chief executive to “block head” at the firm. That shift appears to resonate with Mr. Musk.
“Your new title on the block is Fire,” Mr. Musk tweeted to Mr. On Saturday, Dorsey uses two flame emojis to show his approval. Last year, Mr. Musk changed his title from chief executive to technologist at Tesla.