Thursday, May 30, 2024

Twitter board discusses bid with Musk, reports say

Twitter’s board reportedly met Elon Musk over the weekend to explore his $43-billion takeover offer for the social media platform, the BBC reports.

After the Tesla boss first revealed his bid, Twitter’s management announced a so-called “poison pill” strategy to fend off a potential hostile buyout.

Musk plans to finance his bid with the backing of U.S. lender Morgan Stanley and other financial institutions.

A spokesperson for Twitter declined to comment on the reports.

Details of how Musk intended to finance his offer, which were disclosed to U.S. regulators on Thursday, made Twitter’s 11-member board seriously consider a possible deal, according to Reuters, the New York Times and Bloomberg – citing anonymous sources.

Musk, who owns a more than 9% stake in Twitter, has lined up a $46.5-billion financing package for his bid, according to a regulatory filing. The funding will come from a mixture of his own assets and the backing of Wall Street banking giant Morgan Stanley and other firms.

A number of Twitter shareholders reportedly contacted the company after Musk announced the financing plan and urged it not to miss the opportunity for a potential deal.

Dan Ives, an analyst at investment firm Wedbush Securities, said many investors will view the discussions “as 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.”

A hostile takeover attempt by Musk, who is the world’s richest person, would put “further pressure on the board with their backs against the wall in this Game of Thrones battle for Twitter,” Ives added.

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