FP StaffApr 25, 2022 11:06:18 IST
When Elon Musk made the offer of buying Twitter for over $43 Billion, many people, including Twitter, assumed that he was joking or trying to troll the micro-blogging site. Ever since then, Musk, on a number of occasions, has said that he was seriously considering taking over Twitter and bringing in some sweeping changes. He has also claimed that if he needs to go through with the plan, he has ensured that he has enough liquidity to go through with the purchase.
The board members of Twitter, who have been at the receiving end of quite a few barbs from Musk, are now actually considering selling their stake and the company to Elon, and allowing him to take over. This is a surprising move from the board, given that just a few weeks ago, they were trying tooth and nail to thwart a hostile Musk’s hostile takeover attempt.
Things seemed to have changed for Twitter when Musk announced that he is in a position to arrange the financing for his bid – nearly $26 billion from more than a dozen investment banks, and another $21 billion from his own personal funds.
The board of directors at Twitter reportedly met Musk’s representatives and will continue to meet them all through Thursday, when they are expected to announce what will be happening to the takeover bid. This announcement will take place on Thursday when it reports its first-quarter earnings.
Musk already owns 9 per cent of Twitter, which is marred with accusations of misconduct, and unorderly declarations. The $47 billion Musk has lined up for Twitter, is about $9 billion more than what he would need to acquire the other 91 per cent, as per calculations by Bloomberg.
Some of Twitter’s biggest shareholders & Musk met privately on Friday, with Musk emphasizing the board’s need to make a “yes or no” decision. Musk’s team then met the board of Directors at Twitter, where they have been discussing Musk’s bid and have been trying to negotiate Musk’s bid.
Reports claim that Twitter’s board had to take a look at Musk’s offer because Twitter’s shareholders have been pressuring the board. The board has a fiduciary responsibility toward their shareholders and is legally bound to do what the shareholders feel would serve them best.