Multiple reports suggest that Tesla CEO Elon Musk met with Twitter’s executive board over the weekend to discuss for the first time his $43 billion [£33.6 billion] takeover bid for the social media network.
The Wall Street Journal reported that Musk and Twitter bosses convened over on Sunday, adding that a takeover deal could be sealed this week. Further reports suggest a deal could be completed as early as Monday [April 25].
Musk, who already owns 9.2 per cent of Twitter, first signalled his intent to buy the social networking site by making an offer on April 14, a move which was greeted coldly by executives who announced a “poison pill” strategy to prevent an outright buyout.
Musk had refused a seat on Twitter’s board before tabling his offer for the company and has said that he wants to “unlock the potential” of the social media platform and protect free speech.
Despite the board's initial reaction, reports of the meeting over the weekend suggest that hostilities over a potential deal may be calming and that a takeover could go ahead.
According to a regulatory filing made on Friday, Musk has compiled a $46.5 billion package of finance for his bid, $21 million of which will come from his own assets and the rest from the backing of several financial institutions including US investment bank, Morgan Stanley.
After the financing plan was disclosed, several Twitter shareholders reportedly reached out to the company’s board and suggested that the possibility of a deal be considered.
Victoria Scholar, head of investments at Interactive Investor, told the London Evening Standard: “Although Twitter initially rebuffed Musk’s first takeover attempt with its poison pill strategy designed to dilute Musk’s stake, the company’s icy stance started to thaw.
“With Twitter now conceding to talks, for the first time it looks like a Musk acquisition of Twitter is a serious possibility.”
Twitter share prices increased by more than five per cent in pre-market trading following the reports that the deal could be completed.
Image taken from Wikimedia Commons
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