According to multiple reports stemming from people familiar with the matter, Twitter has been engaged in negotiations with Elon Musk over his proposal to purchase the social media platform for $46.5 billion. Sources detail that a number of Twitter shareholders allegedly reached out to the company’s board after Musk detailed his financing plans last week.
Essentially, Twitter executed a shareholder rights plan in order to dilute the appeal of a takeover. The measure attempts to make it harder for Musk to acquire the company unless he increases his shareholder stake. Despite the poison pill plan and the backlash from a number of people against Musk taking over, three reports note that Twitter’s management is contemplating Musk’s offer now.
Furthermore, Twitter’s board is interested in the opinions of U.S. regulators and bureaucrats that may object to Musk’s takeover. The New York Times reports that the agreement is not final and there’s definitely a chance it won’t work. However, people with knowledge of the situation said “Mr. Musk remains fluid and fast-moving.”
Musk is reportedly working with Morgan Stanley in order to acquire debt financing and he allegedly has $21 billion in cash reserves to leverage as well. On Sunday, an analyst at Wedbush Securities, Dan Ives, said he believes Musk’s goal to own Twitter may be successful. In an investor’s note published this weekend, Ives said:
[This is] the beginning of the end for Twitter as a public company with Musk likely now on a path to acquire the company unless a second bidder comes into the mix.
What do you think about Twitter engaging with Elon Musk in regard to his offer to purchase Twitter for $46.5 billion? What do you think about Elon Musk owning Twitter? Let us know what you think about this subject in the comments section below.