Twitter starts takeover talks with Elon Musk after he wooed many of the social media shareholders with an acquisition offer of $43 billion.
This time though Twitter is not thinking of accepting Elon Musk’s offer of a $54.20 per share bid, but is exploring the option to get a more attractive deal according to sources.
After Musk outlined the details of his financing plan for his bid many Twitter shareholders reached out to the company and urged it to not let the opportunity for a deal slip away.
Twitter’s board is in talks with Musk to gather information on his ability to close the deal and potentially on better terms
Not much is known about the discussions being confidential, looks like Twitter will be exploring to pressurize Musk to raise his bid.
Regulators including the U.S. Securities and Exchange Commission (SEC) will carry out investigations with Musk and present the risk to the deal being completed. Additionally, they will also explore if regulars in any of the major markets it operates would object to Musk owning the company.
Further, if Twitter is able to establish the sale to Musk is risky, it would mean they can demand a sizable breakup fee, according to the sources.
Earlier Twitter introduced the poison pill to prevent Musk from raising more than a 9% stake in the company above 15% without negotiating a deal with its board. Musk reacted to this with a tender offer that he could register Twitter shareholder support for his bid.
Twitter’s board is concerned that unless it sought to negotiate a deal with Musk, many shareholders could back him in a tender offer.
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