Twitter and Elon Musk are said to be close to selling the social media giant Elon Musk after the Tesla CEO started funding late last week.
Intense meetings over the weekend could lead to a deal being announced this week, or even today, according to media reports. Twitter’s board initially avoided the sudden offer amid doubts about Musk’s funding and concerns about a platform that wants to be far more free from content control across the board and allow it to function entirely as a “public playground”. ”
Musk made a $54.20 cash offer on Twitter on April 13, after he scrapped the idea of buying a 9.1% stake in the company and playing first and joining the board. In response, Twitter said it was considering the proposal, but quickly agreeing to a poison pill or shareholder rights scheme that would make it harder to catch hostile.
Musk said he has made a financial commitment of $46.5 billion to buy the company and is considering a proposal or asking management to forward the offer directly to shareholders.
The financing includes debts of $13 billion and $12.5 billion from Morgan Stanley and other financial institutions, respectively. Muskie’s capital obligation to cover funds not funded by these two is expected to be approximately $21 billion.
A Twitter spokesperson did not immediately respond to a request for comment. The company finally weighed in last weekend: “Twitter has received an updated, non-binding quote from Elon Musk, providing additional information on the original offer and new information on potential funding. As previously disclosed and communicated directly to Mr. Musk, the Board is committed to conducting a careful, thorough and purposeful review to determine the course of action it believes is in the best interest of all Company shareholders and Twitter.
Twitter, which will release its latest earnings on Thursday, has faced financial and growth difficulties, and Muskie’s offer is considered rich. Some names of other potential buyers or financiers have been leaked to a possible offer from a competitor, but none may have been implemented.
Source: Deadline
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