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WSJ Reports Twitter Will Reconsider Elon Musk’s Offer

WSJ Reports Twitter Will Reconsider Elon Musk’s Offer
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With board members of Twitter looking at a likely lawsuit and Musk showing he can raise the needed funding for a buyout of Twitter, the board is left with little choice but to take another look at Musk’s offer to buy out the company.

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According to the Wall Street Journal:

Twitter Inc. is re-examining Elon Musk’s $43 billion takeover offer after the billionaire lined up financing for the bid, in a sign the social-media company could be more receptive to a deal.

Twitter had been expected to rebuff the offer, which Mr. Musk made earlier this month without saying how he would pay for it. But after he disclosed last week that he now has $46.5 billion in financing, Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate, people familiar with the matter said. The situation is fast-moving and it is still far from guaranteed Twitter will do so.

The Wall Street Journal went on to say that Twitter and Musk met over the weekend to discuss his buyout and see if there was a path forward.

Musk has been working feverishly behind the scenes to garner support for his takeover of the company. WSJ noted that he “met privately” with several shareholders on Friday to “extol the virtues of his proposal.” The author wrote that the Tesla CEO also “pledged to solve the free-speech issues he sees as plaguing the platform and the country more broadly, whether his bid succeeds or not,” the author wrote.

Musk looks to be pushing to complete his buyout at $54 per share, which is what he originally offered to buy the platform for. The board is expected to put the buyout in front of the board when they meet for their first-quarter earnings report, which should happen by Thursday.

The board first looked like they were going to reject Musk’s offer by putting in place a “poison pill,” thus devaluing its stocks and making it harder for Musk to gain controlling shares of the company.

However, now that Musk has revealed he has $46.5 billion in financing, the company is changing its tune. “Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate, people familiar with the matter said,” according to the WSJ. “The situation is fast-moving, and it is still far from guaranteed Twitter will do so.”

The report also noted:

Mr. Musk already has some shareholders rallying behind him following the meetings. Lauri Brunner, who manages Thrivent Asset Management LLC’s large-cap growth fund, sees Mr. Musk as a skilled operator. “He has an established track record at Tesla,” she said. “He is the catalyst to deliver strong operating performance at Twitter.” Minneapolis-based Thrivent has a roughly 0.4% stake in Twitter worth $160 million and is also a Tesla shareholder.

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Musk has been working feverishly behind the scenes to set up a direct appeal to shareholders, bypass the Twitter Board and present his plan directly to them; this may be forcing the board to negotiate, lest they lose control.

While this current set of events does not promise a buyout of Twitter by Musk, it pushes this from being a long shot to something with a far better chance of succeeding.

BREAKING – Twitter has accepted Musk’s offer.

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About The Author

Timothy Benton

Student of history, a journalist for the last 2 years. Specialize in Middle East History, more specifically modern history with the Israeli Palestinian conflict. Also, a political commentator has been a lifetime fan of politics.

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