Now, he has cash. Elon Musk, a billionaire at SpaceX and Tesla, has made a major move to buy Twitter.
Musk announced last week that he would offer $43 billion to purchase the platform. However, the Twitter board of Directors kept quiet and did not disclose the deal to shareholders. Florida could sue Twitter for failing to disclose the deal to shareholders.
Musk might have made Twitter an offer that the board cannot refuse.
JUST IN: Elon Musk has secured a $46.5 billion financing commitment to acquire Twitter Inc and is considering starting a tender offer for its outstanding shares, a filing with U.S. regulators showed.
— Shaun Kraisman (@ShaunKraisman) April 21, 2022
Musk reported to the Security and Exchange Commission that he will put up $21 Billion of his own money and has secured outside financing to pay for the remainder of a sweetened deal to purchase Twitter. Musk has offered $46.5 billion as a possible tender offer.
These are the real things.
The Reporting Person [Musk] has been considering whether to make a tender offer for all outstanding Common Stock shares (along with any rights that were issued pursuant to the Rights Agreement (“Rights” or, together with Common Stock, “Shares”) that are currently issued and not held by him at a price $54.20 per share net to the seller in cash and subject to certain conditions (the “Potential Offer”). However, he is not yet sure if he will do so.
Musk clarifies that he has not yet made a tender offer.
CNBC reports that a Twitter spokesperson stated that the social media company had “previously communicated directly to Mr. Musk, and the Board is committed to conducting a careful and comprehensive review to determine what course of action it believes is best for the Company and all Twitter stockholders.” This may explain why Twitter has not made any public statements.
Morgan Stanley Senior Funding will finance all the rest, with the assistance of “Bank of America”, Barclays and MUFG, Societe Generale. Mizuho Bank, BNP Paribas.
Musk’s ability to acquire the company is in doubt, as the board has used a poison pill that makes the acquisition impossible.
Musk promises to liberate Twitter speech. The social network has previously kicked out users who are politically opposed to it, including ex-president Donald Trump. It also blocked stories it believed would hurt Joe Biden during the last election.
Twitter has been a disaster for its reputation. Conservatives have fled the site to start their own versions with more liberal speech policies.
Musk purchasing Twitter has caused panic among the Left. It will allow people with different views to share the platform.
They are unable to accept not being in control of the narrative. Boohoo.