Twitter is still considering Elon Musk’s takeover bid: this is what’s going on

Twitter is still considering Elon Musk’s takeover bid: this is what’s going on

According to information from The New York Times, the top of Twitter is in extensive negotiations with Elon Musk about his takeover offer. Musk had offered a converted 42.8 billion euros for Twitter and at first the social network app had resisted the plans of the Tesla CEO.

Twitter reconsiders takeover

The board of Twitter is again looking at the possible takeover deal by billionaire Elon Musk. This is according to sources from The New York Times† On Sunday, Twitter’s board of directors met to discuss Musk’s proposal, and later in the day, Elon Musk also met at the table to discuss the numbers and terms.

Elon Musk, the CEO of Tesla and the space company SpaceX, suddenly bought 9.2 percent of the shares of Twitter at the beginning of this month. A week later, Musk then put EUR 41 billion on the table to buy the full 100 percent of the shares. Analysts spoke of a hostile takeover because the businessman also indicated that he might sell all his interests if Twitter’s board of directors decided to ignore the takeover offer. Such a move would negatively impact the social media app’s share price.

Poison pill and new twist

wrote last week Reuters that the board of Twitter was not in favor of a deal despite that threat from Musk. Twitter then activated what is called a “poison pill” in economic jargon. That is, all other shareholders with the exception of Elon Musk could buy shares of the company at a significant discount. As a result, the value would fall sharply and that would deter the Tesla boss.

It is therefore striking that the parties have now come to the table to discuss all the terms and conditions of a possible agreement. Twitter has not yet responded to this information.

More Twitter news

There was also more important news this month about Twitter, as the app comes with an edit button for tweets for the first time. Critics have been concerned about the potential impact, but the social media app wants to implement the feature in such a way that users can’t just reinvent their past tweets unnoticed.

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Image: Elon Musk Dreaming of a Brighter FutureSteve JurvetsonCC BY2.0

– Thanks for information from Androidworld. Source

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