Twitter is reportedly reconsidering Elon Musk’s $ 59 billion takeover bid

Twitter’s board is reportedly gearing up for Elon Musk’s hostile takeover bid after the billionaire announced he secured funding for the proposed deal.

Twitter’s board of directors is reconsidering Elon Musk’s AU $ 59 billion (US $ 43 billion) acquisition offer after announcing it has secured funding for the offer, reports The Wall Street newspaper.

The two sides are expected to meet later today.

Twitter, which appeared not to be receptive to the deal when Musk first announced the offer earlier this month, is reportedly now taking “a fresh look at the offer and is more likely to first try to negotiate, “according to the report.

This comes after Musk publicly refused to join Twitter’s board, walking away from the company’s announcement that he would join in light of its recent acquisition of Twitter stock which made him the the largest shareholder of the company.

After this, he announced an unexpected hostile takeover bidto which Twitter’s board of directors introduced a “poison pill”, essentially preventing Musk from buying more than 15% of the company by imposing prohibitive penalties.

Mr. Musk is reportedly describing Twitter’s decision to other shareholders as a yes or no question; whether or not it accepts its hostile takeover bid. On the other hand, Twitter is reportedly looking for other options, including leaving the door open for other bidders or negotiating terms other than price.

Mr. Musk recently announced had secured $ 64 billion (US $ 46.5 billion) in funding for the deal.

Mr. Musk is the richest person in the world and has gained corporate fame from founding or co-founding companies such as PayPal, Tesla and SpaceX.

Twitter, despite its large cultural footprint, pales in comparison to tech giants like Facebook and Google. Twitter has 217 million “monetizable daily users” according to the company, compared to Facebook’s 1.79 billion. Facebook’s parent company Meta has a market capitalization of $ 532 billion compared to Twitter’s $ 37 billion.

Mr. Musk previously criticized what he perceives as Twitter’s lack of adherence to freedom of expression.

“I invested in Twitter because I believe in its potential to be the platform for free speech worldwide,” Musk wrote to Bret Taylor, president of Twitter, after announcing the hostile takeover bid. “I believe that free speech is a social imperative for a functioning democracy.”

in a TEDtalk After Twitter announced that Musk would join its board, it criticized Twitter for its “black box” algorithm as contrary to the interests of free speech.

“But in general, like I said, it’s not going to be perfect, but I think we want him to really have the perception and reality that the speech is as free as reasonably possible. And a good sign if there is free speech is that someone you don’t like is allowed to say something you don’t like. “

He criticized the company’s management for this perceived flaw.

“Since I made my investment, I now realize that the company will neither prosper nor serve this social imperative in its current form,” he wrote in the letter to Mr. Taylor. “Twitter needs to be turned into a private company.”

He has the eighth most followed Twitter account and often moves markets with his tweets.

The US Securities and Exchange Commission in 2018 found Elon Musk $ 40 million and was forced to step down as Tesla president after tweeting that he would take Tesla privately for $ 420 per share (a number commonly associated with the consumption of cannabis is a favorite of Elon Musk: his Twitter offer values ​​each share at $ 54.20).

Investors did not know what to think of the announcement and caused the share prices to fluctuate.

Originally published as Twitter is reportedly reconsidering Elon Musk’s $ 59 billion takeover bid

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