On Sunday, Twitter’s board of directors and Elon Musk’s team were meeting to discuss a takeover bid.
Musk noted in an April 16 tweet, fending off Musk’s $43 billion offer by creating more shares could dilute the value of shareholders’ stock but Twitter’s 10 board members own just a tiny portion:
“The Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders.”
That same day, even Twitter co-founder Jack Dorsey, who is formally leaving the board when his term expires at the company’s annual shareholder meeting next month, tweeted that the board of directors “has consistently been the dysfunction of the company.”
Musk, who owns a 9.2% stake in Twitter, has reportedly secured $46.5 billion in financing to fund his Twitter takeover.
Now, Twitter was reportedly re-examining Elon Musk’s $43 billion takeover supply after the billionaire lined up financing for the bid.
On Monday, Bloomberg broke the news that the deal may be made as early as today.
— Bloomberg (@business) April 25, 2022
More details of the story from Bloomberg:
Twitter Inc. is in the final stretch of negotiations about a $43 billion sale to Elon Musk that could rank as one of the biggest-ever leveraged buyouts of a listed company, people with knowledge of the matter said.
The social media company is working to hammer out terms of a transaction and could reach an agreement as soon as Monday if negotiations go smoothly, according to the people, who asked not to be identified because the information is private. Musk is lining up partners for the acquisition and continues to speak to potential co-investors, one of the people said.
Discussions between the billionaire Tesla Inc. chief executive officer and Twitter’s board about a takeover at $54.20 per share continued overnight into the early hours of Monday, the people said. Shares of Twitter jumped 3.9% to $50.84 as trading got underway in New York.
Twitter started warming up to a potential deal after Musk revealed a financing plan for the unsolicited bid that included backing from Morgan Stanley and other institutions. The situation is fluid, and talks could drag on longer or fall apart, the people said.