Twitter engages Elon Musk in acquisition talks amid shareholder strain: report

Twitter engages Elon Musk in acquisition talks amid shareholder strain: report


Following a gathering on Sunday morning, Twitter’s Board of Administrators reportedly met with Tesla and SpaceX CEO Elon Musk to debate the manager’s acquisition supply for the social media platform. The negotiations between Musk and Twitter have been reportedly in depth, because the discussions lasted into the early hours of Monday. 

Whereas neither Musk nor Twitter has issued an announcement concerning the Sunday negotiations, it’s believed that the CEO’s 13D filings with the SEC final week — which revealed that he had obtained commitments for a $46.5 billion acquisition of the social media firm — was a big issue. This, nonetheless, was not all. 

Citing two people acquainted with the matter, Reuters famous that quite a few Twitter shareholders have reached out to the social media firm following Musk’s submitting final week. The shareholders reportedly urged Twitter to barter with Musk and never let the chance for a potential deal slip away. Musk had provided to accumulate Twitter for $54.20 per share, an quantity that the CEO described as his “finest and remaining” bid. 

In a manner, Musk’s assertion that his supply was remaining was reportedly a hurdle for Twitter’s board, in accordance with the publication’s sources, who opted to stay nameless because the offers have been nonetheless confidential. The sources famous that Twitter’s Board had opted to negotiate with the Tesla CEO to assemble extra info and doubtlessly get extra favorable acquisition phrases. 

Contemplating that Musk and Twitter’s Board have been reportedly in discussions till the early hours of Monday morning, it seems that a deal between the 2 events might certainly be believable. This bodes effectively for Musk, as Twitter’s Board reacted reasonably negatively to his preliminary acquisition efforts. In response to Musk’s bid, Twitter’s Board of Administrators adopted a “poison capsule” technique, which might make it extra pricey and troublesome for the CEO to take over the corporate. 

To date, Elon Musk’s $54.20 per share supply has garnered polarizing reactions from a few of Twitter’s traders. Some, which have adopted optimistic worth expectations for the corporate, reportedly imagine that the corporate ought to give Twitter CEO Parag Agrawal extra time to spice up Twitter’s worth. Others, nonetheless, word that the current plunge within the worth of financial shares amid inflation and financial slowdown issues makes Musk’s supply compelling. 

Sahm Adrangi, portfolio supervisor at Kerrisdale Capital Administration, described this stance within the following assertion. “I might say, take the $54.20 a share and be performed with it,” Adrangi mentioned. 

Don’t hesitate to contact us with information suggestions. Simply ship a message to simon@teslarati.com to present us a heads up. 

Twitter engages Elon Musk in acquisition talks amid shareholder strain: report


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October 2022