Twitter Makes U-Turn And Is Reconsidering A Deal With Elon Musk
Twitter Inc (NYSE:TWTR) is reconsidering Elon Musk’s offer to buy the company for $43 billion after the billionaire secured financing. The social media company may be more receptive to a deal, people familiar with the matter told The Wall Street Journal.
Twitter rejected the offer Musk made earlier this month. However, it was revealed the tech billionaire now has secured $46.5 in financing, plus $21 billion he will add from his own pocket to form a mouthwatering package.
Get The Full Series in PDF
Get the entire 10-part series on Charlie Munger in PDF. Save it to your desktop, read it on your tablet, or email to your colleagues.
Q1 2022 hedge fund letters, conferences and more
What Investors Can Learn From The World’s First Hedge Fund
According to Preqin, the hedge fund data and intelligence firm Alfred Winslow Jones created the first hedge fund strategy in 1949 with a simple system. He wanted to separate the risks of market volatility and stock-specific risks and set out to build a market-neutral portfolio that he believed would outperform in all markets. Jones stumbled Read More
Upon the announcement and after rejecting the initial $43 billion offer, Twitter is reported to review the bid and is likely to negotiate, sources added.
Musk’s funding includes more than $25 billion in debt from nearly every blue-chip investment bank in the world, aside from the two that advise Twitter. The other $21 billion are likely to come from the selling of existing stakes in his other businesses, such as Tesla Inc (NASDAQ:TSLA).
Elon Musk had already bought 9.2% of the company, and according to various reports, the CEO of Tesla invested $2.9 billion. With the operation, Musk became the main individual shareholder of this social network –however, he has decided not to be as involved.
As reported by CNBC, shares of Twitter jumped by 5% on reports the company was considering accepting Musk’s offer, with the two parties likely to reach an agreement Monday.
Twitter CEO Parag Agrawal announced that Elon Musk has decided not to join the social media platform’s board of directors upon becoming its main shareholder.
“I think this is the best. We value and will always value the input of our shareholders, whether they are on our board or not. Elon is our largest shareholder and we will remain open to his input,” Agrawal said.
In addition to being a shareholder, and regardless of whether or not his bid is successful, Musk has said he is committed to changing free speech policies he sees as plaguing the platform.
However, the world’s richest man has indicated that if the current offer fails, he could sell his stake, which is more than 9%.
Updated on Apr 25, 2022, 10:00 am