Twitter reconsiders Elon Musk takeover bid: Report
Washington: Twitter is reconsidering Elon Musk’s takeover proposal, with talks between the two camps underway on Sunday, The Wall Street Journal reported, after the billionaire said Thursday he had secured the necessary funding.
“Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate,” the business daily reports, citing people familiar with the matter.
Tesla CEO Musk said on Thursday he had secured nearly $46.5 billion to fund the deal, but also planned to appeal directly to company shareholders as he considered taking over. the social media platform.
Twitter’s board had opposed the proposal, lining up a “poison pill” clause that would make it harder for Musk to acquire more than 15% of the company through the marketplace. He currently owns 9.2% of the shares.
“Twitter’s potential U-turn comes after Mr. Musk met privately with several of the company’s shareholders on Friday,” the Journal reported.
Musk “is committed to addressing the free speech issues he sees as plaguing the platform and the country more broadly, whether or not his candidacy is successful,” the sources added, according to the Journal.
Musk has previously cited free speech concerns as motivation to buy the platform, though free speech experts have pointed to Musk’s unpredictable statements and history of bullying critics as contrary to its stated goals.
He “presented his pitch for selecting shareholders in a series of video calls, with a focus on actively managed funds … in the hopes that they could sway the company’s decision,” they said. the sources in the Journal.
The polarizing billionaire said last week that he was considering bypassing Twitter’s board of directors in its takeover bid by buying shares directly from existing shareholders, “but has not determined whether to do so. at this time,” according to a headline filing released Thursday.
The Journal specifies that Twitter could make an announcement on this subject by Thursday or even before, according to these sources.
Musk apparently recently told Twitter Chairman Bret Taylor that his initial offer of $54.20 per share on April 14 had not changed, the daily added.
Twitter previously invited Musk to join its board, but the SpaceX chief declined.