Twitter reconsiders Elon Musk’s purchase proposal

(Washington) Twitter is reviewing Elon Musk’s purchase proposal, and talks between the two camps are taking place on Sunday after the Tesla boss said on Thursday he had secured the sum necessary for the transaction, it said Wall Street Journal.

Posted at 5:13pm

“Twitter is taking a fresh look at the offer and is more likely than before to seek negotiations,” the business daily believes, citing close sources.

Tesla’s boss hinted Thursday that he had secured nearly $46.5 billion to fund the transaction, but also that he plans to go directly through Twitter shareholders to buy the social network.

Twitter’s board of directors had resisted the takeover by passing a so-called “poison pill” clause to make the takeover more difficult if it reached 15% of Twitter’s share capital. He currently owns 9.2%.

Also according to these sources, “the potential reversal on the part of Twitter comes after Mr Musk met privately with several of the company’s shareholders on Friday.”

He also “promised to find a solution to the problems of freedom of expression […]whether his offer will be accepted or not. Elon Musk said he wants to make Twitter “the platform for freedom of expression in the world.”

The Tesla CEO has “emphasized actively managed funds, these sources said, hoping they could influence the company’s decision.”

He had hinted Thursday that he plans to buy back their shares directly through Twitter shareholders without going through the board of directors (CA), but had not confirmed he could resort to a public unfriendly bid.

Twitter could, according to these sources, come out with a response on Thursday when it releases its first-quarter results or even earlier, which “could leave the door open to other offers or negotiate with Mr. Musk on terms other than price.”

Elon Musk has also “repeatedly reiterated to Twitter President Bret Taylor over the past few days that he is not going to leave his March 14 Wall Street Journal.

Twitter then offered Mr Musk to join its board of directors, but the multi-billionaire turned down the offer.

Leave a Comment