Twitter and Elon Musk Revisiting Negotiations Today
This coming after the Tesla CEO confirmed $46.5 billion in financing
It seems Elon’s time trolling Bill Gates is being set aside as the board of Twitter is in the process of reconsidering Elon Musk’s bid to purchase the social platform according to the WSJ.
Sources told WSJ that Twitter officials are meeting today to re-evaluate Musk’s offer with a sense of being more open to negotiating after initially trying to knock off his purchase. The board last week fought against Elon Musk and his bid even going as far as to use a “poison pill” against his “hostile takeover.”
The change in heart comes after Elon Musk confirmed his $46.5 Billion financing by proving it through a regulatory filing this week. The filing indicates that Musk has locked in funding agreements from banks and other third-party entities. The discussion also comes back to light after Musk met with shareholders in a private meeting last week to continue pitching his bid. Musk outlined the importance of the board making a decision.
The sources cited claimed that Twitter will be addressing the bid on its Q1 earnings call which takes place this Thursday at the latest.
The Journal's sources said that Twitter intends to address the bid on its first-quarter earnings call on Thursday at the latest. It is being said that the Twitter board is expected to find that Musk’s all-cash $54.20 per share offer for the company is too low by the time they report Q1 earnings.
Both parties have been in a battle for the upper hand in negotiations ever since Elon Musk had announced he acquired a 9% stake in the company. Just shortly after, Elon Musk pitched his bid to buy all of Twitter for $54.20 a share.
In an attempt to put to rest its persistence by Elon, Twitter filed for a shareholder rights plan. This is the “poison pill” being thrown around. The pill would dilute a buyer’s stake by flooding the market with discounted shares. Some people claim that Musk may opt (this is very doubtful) for a “hostile takeover” by making offerings to shareholders.
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