Twitter Takeover Deal Negotiations With Elon Musk Underway: Reports
variety.comNaman Ramachandran The 11-member Twitter board met on Sunday to consider billionaire Elon Musk’s $43 billion takeover offer for the social media company, according to reports.Musk “wooed many of the social media company’s shareholders with financing details on his $43 billion acquisition offer,” according to Reuters which quoted people familiar with the matter. “The company’s decision to engage with Musk… does not mean that it will accept his $54.20 per share bid,” according to Reuters. “It signifies, however, that Twitter is now exploring whether a sale of the company to Musk is possible on attractive terms.”The situation “remains fluid and fast-moving,” per The New York Times.
The paper also said that that the discussions may come down to the price of the bid. Musk’s offer was a significant premium to the company’s stock price at the end of January, but still represents a large discount compared with the shares’ more than $60 apiece valuation through much of last year.
Variety has reached out to Twitter for comment.Musk holds a stake, which is more than 9%, in Twitter. He has put together a $46.5 billion financing package, consisting of his own assets and the support of Morgan Stanley and other companies, for his bid, according to a regulatory filing.
This includes $13 billion in debt financing, $12.5 billion in loans against his share stake in Tesla, with $21 billion in equity financing expected to be added by Musk.On April 14, Musk — the CEO of Tesla and SpaceX and the wealthiest person on the planet — proposed to buy Twitter for $43 billion in a hostile takeover, offering $54.20 per share for the social media company.
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