Twitter Could Accept Elon Musk's Takeover Offer Today
Elon Musk looks likely to become a media mogul later today amid reports that Twitter will accept his bid to acquire the company after all.
As Reuters reports, sources who wish to remain anonymous believe Twitter's board will recommend shareholders accept an offer for $43 billion in cash. The deal on the table will not allow Twitter to solicit other bids once it's signed (a so-called "go-shop" provision), but if another offer appears, Twitter may accept it by paying Musk an undisclosed break-up fee.
The deal is seen as Musk's "best and final" offer, and it follows details of how the billionaire plans to fund the acquisition, which were revealed late last week. Multiple loans from Morgan Stanley and other financial institutions, combined with $21 billion from equity financing covered by Musk himself, have clearly given the Twitter board enough confidence to move forward.
Earlier this month, the board rebuffed Musk's bid by adopting a “poison pill” plan to stop him from gaining shareholder control. Under the plan, Twitter shareholders would be allowed to buy additional shares at a discount if someone acquired 15% or more of Twitter’s stock without approval from the company’s board.
That would no longer be in play if the full acquisition goes through. Musk has stated he intends to switch the focus of the social network to free speech and less content moderation, suggesting time-outs instead of permanent bans would be preferable, for example.
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