Elon could be buying the blue bird after all
Elon Musk‘s Twitter investment looks like it could turn into a full-on buyout, with some sources suggesting the takeover could be confirmed imminently.
Following his nine per cent stake purchase being held up by breaching proper SEC procedure and choosing not to join the board of directors, Musk then offered to buy the company outright for a whopping $41bn.
However, despite rejecting his opening bid, the social media giant is thought to have been deploying a “poison pill” approach – which deters anyone from having more than a 15 per cent stake in the company – to stave off other potential investors and find the true value of the company, according to the likes of the BBC.
Twitter board members are thought to have met the world’s richest man over the weekend to discuss his latest $46.5bn (£39.1bn) offer, with the 50-year-old having reportedly disclosed how he intends to finance the takeover to US regulators on Thursday.
The funding will come from a mixture of his own assets – his own net wealth is estimated to be $264.6bn – and the backing of Wall Street banking giant, Morgan Stanley, among other as-yet-unconfirmed firms.
The New York Times says the potential deal has now reached the “advanced stages”, with the 11 board members now said to be “seriously considering” Musk’s bid of $54.20 a share.
While an estimated timeline is still up in the air, especially given his previous setbacks and unsolicited approaches, the deal remains very fluid and some suggest the “endgame” that Elon could buy Twitter this week.
Musk has sent Twitter shares soaring by 25 per cent after he announced his purchase of a $2.89bn (£2.20bn) stake earlier this month and already holds a total of 73,486,938 shares.
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