Musk’s Takeover Offer: Latest Round of Twitter Thriller?

Status: 04/25/2022 11:26

Are shareholders putting pressure on you? According to a media report, Twitter management is now negotiating with Tesla boss Elon Musk about his offer. The deal could go through this week.

Twitter management appears to be slowly abandoning its previously negative attitude towards Elon Musk’s offer. The Wall Street Journal (WSJ) reports that the parties are negotiating and could strike a deal this week. Financial service Bloomberg also wrote that Twitter has become more open to Musk’s plan since he unveiled $ 46.5 billion in funding commitments last week.

Musk had announced his intention to take over Twitter about ten days ago and had already bought a healthy 9% stake in the past few months. He explained his intention to him with alleged restrictions on free speech on the short message service, which he wanted to deactivate.

The uncertainty remains

The board of the online service then introduced a countermeasure that allows other shareholders to buy shares at lower prices as soon as an attacker like Musk has a stake of more than 15%. It is also envisaged that in the event of a possible acquisition of the company through the large-scale purchase of shares, the purchaser must pay the other shareholders a so-called control premium.

According to “WSJ”, the reason for the possible rethink is Musk’s video conferences with “selected” Twitter shareholders. After Sunday’s meeting, the sides made progress but still had to settle some differences, the “WSJ” continued, citing informed people. It is not yet certain that a deal will come, he said. So far, Twitter has only officially referred to the announcement that Musk’s offer will be reviewed in the interest of all shareholders.

Musk needs a loan

According to “WSJ”, Twitter may officially comment on Thursday when quarterly data should be announced, or even sooner. Subsequently, Twitter may suggest “other offers or other terms” to Musk.

Musk has repeatedly stressed that he will not raise the offered price by $ 54.20 per share. That would appreciate Twitter at around $ 43 billion. Investors have so far been skeptical that Musk will hit his target: the stock closed at just under $ 49 on Friday, well below its offer. Today Tesla continues to gain ground in pre-market trading in the United States.

Tesla boss Musk is by far the richest person in the world. However, his fortune consists almost exclusively in shares of the electric car manufacturer and its space company SpaceX, so much so that he should also resort to credit for a purchase on Twitter.

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