Twitter, which initially rejected Elon Musk’s $43 billion offer to acquire the entire company, and initiated the so-called “poison pill” strategy to avoid the hostile takeover at all costs, is seriously considering the tycoon’s offeras revealed by the Wall Street Journal.
This reconsideration by Twitter comes just a few days after Elon Musk confirmed to the United States Securities and Exchange Commission (SEC) that he had sufficient financing for the acquisition of the social network. According to anonymous sources confirmed to the aforementioned medium, the Twitter board of directors began talks with the billionaire on Sunday, and they are expected to continue in the coming hours. Both parties, in particular, they seem to be negotiating on the deadline to close a possible dealas well as the conditions on a fee that Elon Musk will have to pay if a signed agreement falls apart.
Although there are no guarantees that Twitter and Elon Musk will reach an agreement for the acquisition of the company by the tycoon, the San Francisco firm is expected to make a public statement on the negotiations next Thursday, the date on which they will present the first quarter results.
Twitter initially rejected the offer.
Elon Musk, remember, has enough money to close a deal with Twitter. The entrepreneur, in particular, has a financing of about 46,000 million dollars. With that amount, you could acquire 100% of the platform in two ways. The first; reaching an agreement with the company itself, as planned. The second; making a public offer, which consists of buying the shares of Twitter investors. Musk, in fact, would have already spoken with several shareholders, to whom he promised to solve the problems of freedom of expression that, according to the billionaire, are harming the platform.
Twitter, for its part, initially rejected Elon Musk’s offer. She did it just hours after it was made public. He also initiated a strategy known as the “poison pill”, which consists of limiting at all costs the possibility that any interested party —Elon Musk, in this case— acquire more than 15% of the company through the purchase of shares. . Twitter, in particular, planned to offer assets for a lower price than the current one to its investors so that they can later sell them at a higher price and, therefore, reduce Musk’s participation.
If the hostile takeover were approved, Twitter could offer to buy the tycoon’s own shares at a lower price than usual. Again, to reduce Musk’s stake and force the billionaire to acquire new assets at a higher cost.