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.
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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.
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A takeover bid is hostile when a person or business tries to take over another company against the target firm’s management wishes.
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