Skip to main content

Twitter re-examines Musk’s bid after Tesla CEO secures financing.

By Editor

 


Any deal on the matter is far from conclusive

Liz Peek and Kara Frederick weigh in on the war on free speech on 'Fox Business Tonight.'video

House Republicans ask Twitter to preserve Elon Musk's takeover bid records

Liz Peek and Kara Frederick weigh in on the war on free speech on 'Fox Business Tonight.'

Initially hostile to the idea of Tesla CEO Elon Musk taking over Twitter, the company is reportedly warming up to the idea after the billionaire said last week he had secured the necessary $43 billion in funding.

Sources familiar with the matter told The Wall Street Journal that Twitter is taking another look at the deal and may be closer to negotiating, given how quickly Musk was able to secure financing. 

Elon Musk

FILE: Tesla and SpaceX CEO Elon Musk arrives on the red carpet for the Axel Springer media award in Berlin.  (Hannibal Hanschke/Pool Photo via AP, File / AP Newsroom)

Still, any final deal is far from conclusive. Both sides were expected to meet Sunday to discuss the situation in more detail. 

Musk announced an offer last week to buy the social media platform for $54.20 per share, but did not say how he would finance the acquisition.

Stocks in this Article

TSLATESLA INC.
$1,005.05
-3.73 (-0.37%)
TWTRTWITTER INC.
$51.51
+2.58 (+5.27%)

Musk said Thursday in documents filed with U.S. securities regulators that the money would come from Morgan Stanley and other banks, some of it secured by his huge stake in the electric carmaker.

ELON MUSK CONFIRMS HE TURNED DOWN BILL GATES ON CLIMATE CHANGE COLLABORATION OVER SHORTING TESLA

Twitter has enacted an anti-takeover measure known as a poison pill that could make a takeover attempt prohibitively expensive.

The company said in a statement Thursday that it received Musk's updated proposal and "new information on potential financing" and said its board is "committed to conducting a careful, comprehensive and deliberate review."

Twitter app

FILE: The Twitter icon is displayed on a mobile phone in Philadelphia on April 26, 2017.  (AP Photo/Matt Rourke, File / AP Newsroom)

Musk, who owns about 9% of Twitter shares, indicated that he's exploring what's known as a tender offer in which he 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.

But Musk hasn't decided yet whether to do that.

The poison pill could significantly raise the costs of a takeover. If someone acquires a 15% stake in the company, it would trigger a huge payout to shareholders that could bankrupt Twitter.

ELON MUSK'S INFLATION DURATION WARNING

Other banks involved in Musk's financing include Barclays, Bank of America, Societe Generale, Mizuho Bank, BNP Paribas and MUFG. Morgan Stanley is one of Twitter's biggest shareholders, behind Vanguard Group and Musk.

CEO of Tesla Motors Elon Musk speaks at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party in Austin, Texas, on April 7, 2022. (Photo by SUZANNE CORDEIRO/AFP via Getty Images)

CEO of Tesla Motors Elon Musk speaks at the Tesla Giga Texas manufacturing "Cyber Rodeo" grand opening party in Austin, Texas, on April 7, 2022.  (SUZANNE CORDEIRO/AFP via Getty Images / Getty Images)

Musk's documents say that $13 billion in financing came from Morgan Stanley and the other banks. As much as $12.5 billion would be loans secured by Musk's Tesla stock, and he also committed $21 billion in direct or indirect equity, although he didn't disclose the source of those funds. The filing says that the equity commitment could be reduced by contributions from others or additional debt taken on.

Comments

Post a Comment

Popular posts from this blog

UGANDA ELECTORAL COMMISSION TO ELIMINATE NATIONAL IDENTIFICATION CARDS (IDs) FOR 2021 GENERAL ELECTIONS.

By Editor
The elimination of using National IDs (Ndagamuntu) for the 2021 elections should not have come as a surprise. One would be very NAIVE to think that Bobi Wine has not prepared for this in his Business Plan under the RISK section. It is public knowledge that our EC is not independent.  It is also public knowledge that Military Dictator Yoweri Museveni will never lose an election. What stunned us this morning is when we noticed that on social media, people were mocking Bobi with his "get your Ndagamuntu".  We are on record for saying to all Our readers that the National ID is like Apartheid in South Africa. Students of History would know how those IDs were being used to arrest people, deny them jobs, deny them basic services. Consequently, Bobi was not wrong and will never be wrong on the Ndagamuntu. Except the ones attacking him and mocking him forget that in Uganda, now, no National ID (Ndagamuntu), no service.  If you have not been denied registering your child i...
Post a Comment
Read more

Here is Why Our Utterances For Praying Jesus And God To Come Liberate Ugandans, May Be Misplaced. This Phrase is like inform of a Letter To Some Categorized Section Of Ugandans.

By Editor
https://m.facebook.com/yusufosuta/photos/a.1896701010557789/2070383359856219/?type=3 OPEN LETTER TO NRM SUPPORTERS - NATIONAL ROBBERS MOVEMENT. .................................................................................. Last week of March, a friend told me to pray for Uganda.  I told him that he was an Idiot and we have prayed for too long and we are still hungry and sick and Jesus is not coming soon to liberate us. He then ignored the STUPID and sent me a picture we all now know.  It got me totally messed up.  This guy was telling me to pray then sends a picture of men bowing down in blood.  He might have meant guns but I blocked him because his utterances of praying for Uganda were misplaced. I unblocked him 3 weeks later and asked him about praying and assassinations.  His reply "eithrr prayers or guns or both". I hate violence with a passion.  So he is now blocked in like FOREVER. Do you feel safe?  Do not feel safe. Uganda regim...
Post a Comment
Read more

CAN I CHANGE MY MIND ABOUT THE INHERITANCE I RECEIVED AND ASK FOR SOMETHING ELSE ?.

By Editor
#iip_updates . #Information_is_Power . Read more here https://informationispowah.blogspot.com/2023/07/can-i-change-my-mind-about-inheritance.html in the link. #we_inform_the_uninformed . Okello lost his wife 20 years ago and decided to only focus on their Mateo, Yona and Yosefu. 20 years later, Okello had 7 acres of land, a successful poultry business, and sinotrucks for hire. Early this year, Okello got a call telling him that one of his trucks knocked a boda boda. Okello decided to rush to see if he could sort it out before police became involved. Unfortunately, he never made it, as he was entering the main road, another trailer rammed into him and killed him instantly.   After Okello had been laid to rest, his sons sat down and divided the property amongst themselves. However, of late, Yosefu the last born has started complaining that he was cheated, and he wants to be given something else because most of the chicken in the chicken business died of a fever.   Can ...
Post a Comment
Read more