Twitter looking again at Elon Musk bid, could complete deal this week

Elon Musk makes $41 billion offer to buy Twitter

In context: The ongoing saga of whether Elon Musk will become Twitter’s new owner could end in success for the world’s wealthiest person this week. A new report claims the company is now re-examining Musk’s $43 billion bid after it was expected to reject the offer and even use a poison pill strategy to make the hostile takeover more difficult.

Musk’s attempt to buy Twitter has been fraught with the sort of controversy that constantly surrounds the Tesla boss. From his initial 9.2% acquisition earlier this month and the lawsuit, to turning down a board seat and making a multi-billion-dollar bid.

It appeared that Twitter was so against Musk taking over that it was preparing to initiate a ‘poison pill‘ strategy that would allow existing shareholders (other than Musk) to buy more stock at a discount, thereby diluting the stock and devaluing the acquirer’s shares. This would make the acquisition more expensive and help defend against a hostile takeover.

But it seems that Musk’s confirmation to the Securities And Exchange Commission (SEC) that he has raised $46.5 billion in funding to buy Twitter has changed the company’s position and it is “taking a fresh look” at the offer, according to the Wall Street Journal. Some shareholders reportedly want Twitter to seek a better deal from Musk, though he previously insisted his bid of $54.20 per share was his “best and final” offer.

Musk met with several shareholders privately on Friday to plead his case, and several are now reportedly backing his bid. One issue he faces is that Twitter wants to know more about any active investigations by regulators into Musk, including any by the SEC.

Twitter is set to report its first-quarter earnings this Thursday. It could reveal its decision on Musk’s bid on the same day, if not sooner.

Twitter’s share price reached its highest point of the year so far—$50.98—following news of Musk’s investment. It had fallen since then but rallied to $48.93 on Friday, meaning his offer is 10% above the current price.


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