Multiple sources claim that Twitter was in discussions with Elon Musk regarding his $46.5 billion offer to acquire the social media platform. Sources detail that a number of Twitter shareholders allegedly reached out to the company’s board after Musk detailed his financing plans last week.
Reports claim that Elon Musk may acquire Twitter at the End of the Day
Three days ago, Bitcoin.com News reported on Elon Musk’s plans to improve Twitter which include removing spam bots and making sure free speech is allowed. Musk also stated that he would like to simplify the verification of accounts. However, before Musk outlined his improvements and plans to secure the $46.5 billion needed for the acquisition, Twitter’s board implemented a “poison pill” plan to avoid the acquisition.
Twitter created a shareholder rights strategy to lessen the potential appeal of taking over. This plan attempts to prevent Musk from acquiring the company, unless he raises his stake. Despite the poison pill plan and the backlash from a number of people against Musk taking over, three reports note that Twitter’s management is contemplating Musk’s offer now.
Bloomberg, the Wall Street Journal (WSJ), and the New York Times (NYT) have all reported that people familiar with the matter say Twitter’s board is now engaging in negotiations with the Tesla executive. According to the reports, Twitter’s board is interested in any ongoing regulatory investigations tethered to Musk and his companies and whether or not any investigations could impede the deal.
Sources Say Musk ‘Remains Fluid and Fast-Moving,’ Analyst Believes Musk Will Takeover Unless a Second Bidder Appears
Furthermore, Twitter’s board is interested in the opinions of U.S. regulators and bureaucrats that may object to Musk’s takeover. The New York Times reports that the agreement is not final and there’s definitely a chance it won’t work. However, people with knowledge of the situation said “Mr. Musk remains fluid and fast-moving.”
Musk has reportedly been working with Morgan Stanley to obtain debt financing. He also allegedly has $21 trillion in cash reserves that he can leverage. On Sunday, an analyst at Wedbush Securities, Dan Ives, said he believes Musk’s goal to own Twitter may be successful. In an investor’s note published this weekend, Ives said:
[This is]The end of Twitter’s public status is near. Musk may now be looking to buy the company, unless there’s another buyer.
Last week, Musk also talked about Twitter integrating dogecoin (DOGE) and that it could possibly be a payment option for Twitter’s Blue service. DOGE, which has increased 6.24% since Monday’s news that Twitter was engaging in negotiations with Musk, is currently in red.
How do you feel about Twitter engaging Elon Musk regarding his offer to buy Twitter for $46.5 million? Do you agree with Elon Musk owning Twitter Please comment below on your views.
Images CreditsShutterstock. Pixabay. Wiki Commons
DisclaimerThis article serves informational purposes. This article is not intended to be a solicitation or offer to sell or buy any product, service, or company. Bitcoin.com is not a provider of investment, tax, legal or accounting advice. This article does not contain any information, products, or advice that can be used to cause or alleged result in any kind of damage.
