After Twitter’s board activated the poison pill to block a hostile takeover, Elon Musk is working on his plan B. According to the most recent rumors, the tycoon would be willing to invest $10-15 billion of its own cash to buy the company.
Two sources entrusted to The New York Post that Elon Musk will open the wallet and will offer more than four times the value of its shares on Twitter. The Tesla CEO is considering several ways to raise capital, such as relying on co-investors or borrowing from his current stake.
Although Musk could get billions of dollars to bid, the report says some investors are staying on the sidelines. the impulsive behavior of the founder of SpaceX and the political controversy surrounding it is enough to keep private equity firms out of the deal.
Morgan Stanley, which loaned Elon Musk $10 billion in debt against his stock, would struggle to attract other banks to participate. Despite, Elon Musk would get the support of several private equity firms which has already invested in Tesla and SpaceX.
The man with the most money in the world will present your offer in 10 days. After analyzing his latest tweets, some believe that will speak directly to Twitter shareholders. Elon Musk believes approval should be the responsibility of shareholders, not the board.
the love me tenderly What public Saturday anticipates a takeover bid. If that is attractive enough, shareholders would pressure the board to remove the poison pill.
Elon Musk believes that the interests of the board of directors are not aligned with those of shareholders
Elon Musk isn’t the only one who thinks the twitter board is a mess. Jack Dorsey, co-founder of the social network, told the board has always been the dysfunction of the business. Dorsey, who owns 2.2% of the company and sits on the board, appears to be against the decision to block Musk’s bid.
Other investors agree that the interests of the board are not aligned with those of the shareholders. Wall Street veteran Gary Black made it clear that buying Twitter would mean members would lose between $250,000 and $300,000 in annual compensation. Elon Musk has confirmed that to become a private company, will disband the board and save $3 million a year.
The so-called “free speech absolutist” still has a long way to go before he takes control of Twitter. What is certain is that he’s not the only one bidding for the company, as private equity firm Thomas Bravo would be interested. In addition to the two, other companies such as Disney or Salesforce have considered buying the social network, although it is not known whether they will enter the litigation.
