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Twitter Firm Accepts Elon Musk’s Takeover Offer

Twitter approves Musk's $44 billion acquisition after epic controversy and statements

Twitter’s board of directors accepted the offer of the famous billionaire Elon Musk to acquire the social networking platform and turn it into a private company, which pushed Twitter’s stock to rise by 5.64% during the day after trading stopped.

The cash deal, which represents $54.20 for each Twitter share, gives the social media platform a valuation of up to $44 billion. Musk by revealing a huge stake in Twitter. Read more [Twitter Shares are Flying After Elon Musk Buys a Stake In It] and [Elon Musk Makes a Twitter Acquisition Offer].

Twitter’s board had sought to thwart the hostile takeover deal by adopting the so-called “poison pill” shareholder equity plan. Read more [Twitter’s Board Adopts The “Poison Pill” Plan].

It was clear that there were two reasons for the board of directors to reject the deal, the first being that the bid, besides being higher than Twitter’s share price, was very low given that the company’s shares had skyrocketed above the deal price recently following the news, and the second reason was the lack of clarity How Musk financed the deal, as despite being the richest man in the world, most of his fortune is tied to the Tesla stock, which means he will often have to borrow against his holdings in order to finance the deal.

But the proposed offer became stronger and clearer after Musk announced in a report to the Securities and Exchange Commission that he had received guarantees amounting to $46.5 billion to help him finance the potential deal, which includes $25.5 billion in debt financing from Morgan Stanley Senior and other companies, as well as to its announcement of $21 billion in equity financing. Read more [Twitter is Reconsidering Musk’s Takeover Bid].

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