In dramatic twist, Twitter reconsiders Musk’s offer after he woos shareholders with plans for platform

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Tesla CEO Elon Musk made serious moves this week to further his takeover bid of Twitter and rumor has it that the leftist social media platform is warming to the idea of selling to him after employing a poison pill to stave off the takeover.

In a dramatic twist of events, Twitter could possibly agree to Musk’s terms this week and sell the company to him according to the Daily Mail. Initial negotiations reportedly began Sunday evening and a deal could be struck with the CEO of SpaceX before or after it reports first-quarter earnings on April 28.

The development comes two weeks after Musk’s initial offer of $54.20 a share which was significantly more than what the stock was actually worth. Musk’s filing with the SEC on Thursday, asserting he has lined up $46.5 billion in financing for the deal, seems to be a driving factor in negotiations.

Both sides met on Sunday to discuss the $43 billion sale and made significant progress, according to The Wall Street Journal. It is unknown if Musk was there himself to hash out the details of the buyout.

Two days prior to that, Musk met privately with actively-managed funds that hold a stake in Twitter in an effort to get their backing.

“Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate, people familiar with the matter said,” the Wall Street Journal stated on Sunday. “The situation is fast-moving and it is still far from guaranteed Twitter will do so.”

Shareholders started seriously considering Musk’s offer after he secured financing with the assistance of Morgan Stanley and roughly a dozen banks including Barclays, Bank of America, Societe Generale, Mizuho Bank, BNP Paribas, and MUFG. He is reportedly offering half his stake in Tesla as collateral.

Musk’s purchase of 9.2 percent of Twitter’s stock has caused it to jump in value from approximately $39 a share to $48.93 a share which is still much less than what he proclaimed is his “best and final” offer.

The tech icon claims he is seeking to purchase Twitter, not for economic reasons, but based on free speech principles.

He sent out a cryptic tweet on Sunday that said simply, “Moving on.” That roiled his 83 million followers who could not figure out what he meant and if it had anything to do with Twitter.

Musk clarified the tweet, stating that it was in reference to “making fun of Gates for shorting Tesla while claiming to support climate change action.”

Details of the negotiations are murky at this point since the deal is confidential.

Twitter adopted a poison pill following Musk’s attempt at a takeover to stop him from buying more than 15 percent of the company without the approval of the board of directors. The move allows existing shareholders the right to purchase additional shares at a discount, effectively diluting the ownership interest of Musk. In turn, he threatened to launch a tender offer to win over Twitter shareholder support.

Short-term investors, such as hedge funds, allegedly want Musk’s offer to be accepted by Twitter, according to the Wall Street Journal. Behind that sentiment lies plunging stocks in the technology market and skyrocketing inflation.

“I would say, take the $54.20 a share and be done with it,” Sahm Adrangi, portfolio manager at Kerrisdale Capital Management, a hedge fund that owns 1.13 million shares in Twitter, flatly stated.

Dan Ives of Wedbush Securities noted on Sunday, according to CNN Business, that “the Street will read this news today as the beginning of the end for Twitter as a public company with Musk likely now on a path to acquire the company unless a second bidder comes into the mix. The board could officially reject Musk’s bid and then a hostile tender off will begin.”


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