Elon Musk may end up owning Twitter, as the company’s Board is reportedly considering the billionaire’s latest offer.
It looks like there are more chapters in the Musk-Twitter drama as the company’s Board is said to be seriously considering Musk’s proposal to take it over. The Tesla CEO has offered $43 billion, which translates to $54.20 per share.
This was a different tune from a few days ago when the Board adopted a ‘poison pill’ that would have made it difficult for Musk to buy the whole company. The change in stance came after Musk made it known he had secured $46.5 billion in funding.
A person with inside knowledge told CNBC that the 11-member Board met on Sunday to deliberate on the future of the social media platform.
The two sides could reportedly reach a decision by Monday, as the negotiation extended into the early house of Monday.
Just what the final agreement could look like is not clear, and, per Reuters, the deal could still fall apart. Twitter has not been able to get an understanding that will let it shop for other bidders after signing a contract with Musk’s party.
Meanwhile, on Wall Street, experts are seeing Twitter’s readiness to consider Musk’s bid as a sign the company will eventually go private. Musk is the most likely to buy unless another bidder steps in.
Some commentators say Twitter is at a point where it has to sell, with the company expected to post disappointing results for the first quarter as soon as Thursday. The earnings report may be the perfect opportunity to announce the outcome of the meetings between both parties.
“Locking a deal up today or tomorrow may sound pretty appealing for someone who knows they are in possession of bad news,” Gordon Haskett said on Monday.
Regardless of the outcome, Musk remains the owner of 9.2 percent of the company, the second-largest shareholder. He had been invited to join the Board, but he turned it down at the last minute.
Musk is often found on Twitter, where he has a large following. Acting as his company’s spokesperson, he often uses the platform to announce new features and updates. Tesla does not have a press department. He also accepts feedback from Tesla customers on Twitter. However, Musk uses his verified account at a personal level, posting memes and even ‘roasting’ people that criticize him or his business practices.
The world’s richest man has accused the Board of not representing the interests of the shareholders as the members own almost no share in the company. Musk claims he is not buying Twitter for any financial reason but to ensure the platform maintains free speech. He has styled himself as a free speech absolutist.
Musk has proposed measures to improve the platform, including adding an edit button and turning Twitter headquarters into a shelter for the homeless because nobody went there.