Twitter’s board is reportedly reconsidering Tesla CEO Elon Musk’s $43 billion offer to buy the company and take it private. According to a report by The Wall Street Journal, the company’s shareholders met on Sunday to discuss Musk’s proposal. The two sides are still having discussions to iron out the issues and there are no guarantees that they will reach a deal at the end.
This change in stance comes just days after Musk revealed his plans of financing his bid to takeover the micro-blogging platform. As per the Securities and Exchange Commission filings (via Reuters), Musk plans to use up to $33.5 billion of his own money that will include $21 billion of equity and $12.5 billion of margin loans. Apart from this, Morgan Stanley will provide $13 billion for the purpose. This sum is secured against Twitter itself.
A separate report by Bloomberg says that Twitter’s board is more open to discussions that it had been earlier. The company also unanimously adopted a “shareholder rights plan” or the ‘Rights Plan’ (also known as ‘poison pill’ defense) following for a span of one year until April 14, 2023, in a bid to prevent Musk, or any other investor, from acquiring more than 15 percent of Twitter’s stocks.
Musk, last week, made a pitch to select shareholders over video calls, to discuss its plans of managing the funds. Additionally, the Tesla CEO has also told Twitter Chairman Bret Taylor “he won’t adjust his $54.20-a-share offer for the company.”
Additionally, the micro-blogging platform is also working on estimating its own value, the newspaper reported.
Musk’s Twitter buyout bid
To give you a quick recap, Musk acquired a 9.2 percent stake in the company last month. Shortly after, he was offered a seat on Twitter’s board, which he rejected as it would make it difficult for him to make a bid to buy the company.
“Since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company,” Musk wrote in a letter to the Twitter Chairman.
Then, earlier this month, Musk made his $43 billion bid to buy Twitter at $54.20 per share.
The post Twitter in talks with Elon Musk over $43 billion takeover bid appeared first on BGR India.