According to a new report from the Wall Street Journal, Twitter is “re-examining” Elon Musk’s offer to buy the social media company.
Per the Journal:
Twitter Inc. is re-examining Elon Musk’s $43 billion takeover offer after the billionaire lined up financing for the bid, in a sign the social-media company could be more receptive to a deal.
The Journal did report that “the situation is fast-moving and . . . far from guaranteed.”
But, it said that “Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate.”
Last week, Musk offered to buy Twitter for $54.20 per share, which is about $40-odd billion. Musk made it clear that he wants to buy Twitter in order to reform it into a platform that supports free speech, in contrast to the censorship that we have seen from Twitter in recent years.
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy,” Musk said. “However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form.”
Twitter initially was anything but receptive to Musk’s offer. Instead, the company responded with a “poison pill,” which is an anti-takeover measure that, essentially, makes the company too expensive to acquire. The poison pill would be administered if someone acquires a 15% stake in the company: Musk is at 9%.
Musk, in response, has been considering a tender offer.
Fox News explains:
[Musk] would try to get other shareholders to pledge their stock to him at a certain price on a certain date, bypassing the board. If enough shareholders agree, Musk could use that as leverage to get the board to drop its “poison pill” defense against his offer of $54.20 per share.
Now, however, none of this might be necessary. And, it appears to be because Musk was able to secure funding for his $40 billion offer so quickly.
Musk has filed documents that show that some of the money would come from Morgan Stanley and other banks, while some of it would also come from his stake in Tesla. And, based on the Wall Street Journal’s report the dollar signs might just be too much for Twitter to ignore.
If Musk is able to acquire Twitter, we could be looking at a whole different America. Lately, it has become apparent that the country is moving toward the suppression of speech. But, Musk’s acquisition of Twitter could change that.