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Elon Musk Makes an Offer for $43B to Purchase Twitter

Elon Musk Makes an Offer for $43B to Purchase Twitter

According to the Wall Street Journal reports Elon Musk is going to buy Twitter for 43 billion dollar and it’s going to be accepted by Twitter this may happen by the weekend or the next 24- hour.

Musk is the wealthiest person in the world according to both the Bloomberg Billionaires Index and the Forbes real-time and on the other side of this great deal is Twitter which is a famous American microblogging and social networking.

When Twitter’s board meets on Monday to propose the purchase to Twitter shareholders, the company may declare that it has accepted Musk’s offer. According to the sources, the talks are still ongoing, and the deal might fall apart at any time.

In premarket trading on Monday, Twitter shares rose more than 5% in response to a Reuters article.

Twitter was unable to get from Musk a so-called “go-shop” option, which would have allowed it to seek further bids from potential buyers after the deal was signed.

Twitter would be allowed to accept an offer from a third party if it paid Musk a break-up fee.

Musk visited with several shareholders over the weekend, according to Reuters, to discuss the details of his $54.20 per share bid for the social networking site. According to the newspaper, Musk’s approach prompted the Tesla CEO’s $43 billion takeover bid to be seriously considered by the company’s board of directors.

Reuters reports that numerous Twitter shareholders contacted the company over the weekend after Musk presented a complete financial plan for his proposal on Thursday, urging it not to pass up the opportunity for a deal.

Twitter’s board is concerned that if it stands up to its shareholders in the event Musk makes a compelling tender offer, its negotiating position would suffer. Musk’s insistence that his bid for Twitter is his “best and last,” according to the sources, has proved to be a stumbling block in the deal talks.

According to Reuters, Twitter’s board of directors is in talks with Musk to get more details on his proposal and see if there is room to negotiate better terms for the company.

Twitter has yet to determine whether or not to seek a sale to persuade Musk to raise his price.

Musk has made a fantastic offer to buy Twitter and take it private, restoring the company’s original mission of providing a platform for “free speech.” Initially, Twitter’s board of directors turned down the offer, putting in place a “poison pill” defense to prevent Musk from making a hostile takeover bid.

Twitter shareholders placed pressure on the board to reconsider Musk’s proposal over the weekend.

Musk vowed to launch a tender offer to get shareholder support for his idea, which prompted the board of directors to give it serious considerations.

When Musk tweeted that he had secured funding to take Tesla private for $420 per share, investors accused him of costing them billions of dollars. Musk is facing a class-action lawsuit as a result of the tweet, as well as a legal battle with the Securities and Exchange Commission.

The SEC is also investigating if Musk breached the law by neglecting to report that he bought Twitter shares while building up his 9.2% stake earlier this month.
According to Reuters, Twitter is also looking at whether authorities in any of its major regions would object to Musk running the company.

About Humano

He is a freelance writer based in Turkey. He loves NFTs, football, film and technology.

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