On Sunday morning, Twitter’s 11-member board of directors convened to examine Mr. Musk’s bid to purchase the company and take it private.
Twitter may be getting closer to reaching an agreement with Elon Musk.
The board of directors of the social media business met on Sunday morning to discuss Mr. Musk’s unsolicited $46.5 billion bid to acquire the company, two people familiar with the issue said. Mr. Musk began lining up financing for his offer last week. The financing altered the board’s perception of Mr. Musk’s bid of $54.20 per share, allowing the company’s 11 board members to consider it seriously, the sources said.
Twitter’s board of directors planned to meet with Mr. Musk’s representatives later Sunday to discuss additional details surrounding a potential sale, according to the people, who spoke on the condition of anonymity because they were not authorized to share confidential material. These specifics include a deadline for concluding any proposed transaction and any fees that would be incurred if an agreement is signed and then fails to materialize.
While no agreement is certain, the board of Twitter’s willingness to negotiate with Mr. Musk, the world’s richest man, is a step forward. Mr. Musk, who has over 83 million Twitter followers and began amassing shares in the firm early this year, announced his intention to buy the company and take it private on April 14. However, Wall Street rapidly ignored his proposal due to concerns about his ability to close the deal. Twitter has implemented a “poison pill,” a defensive measure designed to prohibit Mr. Musk from buying additional shares of the firm.
Mr. Musk amended his proposal last week, pressuring Twitter to take his bid more seriously. Mr. Musk outlined in a regulatory filing made public on Thursday how he secured funding from Morgan Stanley and a group of other lenders, who offered $13 billion in debt financing and another $12.5 billion in loans secured by his shares in Tesla, the electric carmaker he founded. He was projected to raise approximately $21 billion in stock capital.
What looked to be an extremely implausible transaction may now become more probable. The scenario involving Twitter and Mr. Musk remains fluid and fast-moving, the people with knowledge of the situation said.
A Twitter spokesperson declined to comment. In earlier public remarks, the firm had claimed its board was “continuing to conduct a thoughtful, comprehensive and deliberative examination to determine the course of action in the best interest of the company and all Twitter stockholders.”
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