San Francisco — Twitter’s board has met Elon Musk to explore his $43bn takeover offer for the social media platform.
After the Tesla boss revealed his bid, Twitter’s management announced a so-called “poison pill“ strategy to avoid a potential hostile buyout.
Musk has engineered his bid with the financial backing of Morgan Stanley, an economic giant, and various financial institutions.
Twitter’s spokesperson declined to comment on the reports.
Details of how Musk intended to finance his offer were disclosed to US regulators on Thursday, making Twitter’s 11-member board seriously consider a possible deal, according to Reuters, the New York Times and Bloomberg – citing anonymous sources.
According to a regulatory filing, Musk owns a more than 9% stake in Twitter and has lined up a package of $46.5bn financing for his bid.’s
Several Twitter shareholders reportedly contacted the company after Musk announced the financing plan. The shareholders urged not to miss the potential opportunity.
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Dan Ives of Wedbush Securities said many investors would view the discussions “as a beginning to the end of Twitter as a public company. Musk is now likely to acquire the company unless another bidder comes into the mix”.
A hostile takeover attempt by the world’s richest person, Musk; would put “further pressure on the board,’ Ives added; “with their backs against the wall in this Game of Thrones battle for Twitter.”
Earlier this month, Musk refused a seat on Twitter’s board; which would have limited the shares he was allowed to own. He then made an unsolicited offer for the company on 14 April.
Twitter’s board immediately announced a plan, “poison pill”, to protect itself against a potential hostile takeover. ‘Poison pill] is a “limited-duration shareholder rights plan.”
The move deters anyone from owning more than a 15% stake in the company. It does this by allowing others to buy additional shares in the firm at a discount.
A takeover bid is hostile when a person or business tries to take over another company against the target firm’s management wishes.