Is Elon Musk edging closer to a complete Twitter takeover?
Over the past weeks, there has been quite a buzz around the love-hate relationship between Twitter and Elon Musk. It seems like Twitter is on the verge of reaching an agreement with Elon Musk.
The social media company is very close to accepting the offer price of $54.20/share, which takes the value of the deal to $43 billion. Many believe that it is just a matter of time before the takeover is complete and that an announcement will be made at any time.
Twitter board shows the green flag after initial opposition?
When rumors regarding the takeover started floating around on the internet, it generated quite a reaction from around the world.
While the world is actively tracking the development of this story, the company’s board seems to have taken a U-turn after opposing Musk. After the initial opposition, it seems like things have changed drastically after Musk filed details of the funding for his bid last week.
Following his bid, there were multiple meetings between the world’s richest man and Twitter shareholders.
Although the board of directors met Musk on Sunday, it does not clearly indicate that the $54.20 bid for each share will be accepted. However, it signals that Twitter is exploring whether the sale to Musk is an attractive option.
Musk may put in a hostile bid if his takeover attempt fails
Musk has not ruled out the possibility of a hostile bid last week for shares in the company. In layman’s terms, it means that Musk would go around Twitter’s board to complete the takeover.
As things stand, a possibility of a hostile takeover cannot be ruled out if official talks hit a dead end. However, any attempts at a hostile takeover could face the poison pill defense. It means that the shareholding of any person who buys more than 15% of Twitter without the green signal from the board will be diluted. There are concerns on Twitter about unleashing the poison pill defense if Musk’s bid is backed by big shareholders.
As we speak, while Musk owns 9.2% of Twitter, the asset management firm Vanguard is the largest shareholder with more than 10% shares.
Twitter knocks on the door of active investigations by regulators
Experts believe that the U.S. antitrust law is not likely to pose a problem for Musk, who is the Chief Executive of Space X. Musk is also the owner of the tunneling company the Boring Company. However, both businesses are not direct competitors of Twitter in any market around the world.
However, it has been reported that Twitter is on the lookout for any active investigations by regulators on Musk.
Although Elon Musk has been quite active on Twitter for quite a while now, his plans to bring Twitter under his ownership have a lot to do with shaping Twitter in line with his vision of making it a “free speech platform.”
Leave your comments below and tell us if you want this deal to go through.
SEE ALSO: A Future with Elon Musk’s Neuralink
For more updates and the latest tech news, keep reading iTMunch