May 28, 2024

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Elon Musk agrees with a tweet saying "The game is fake" if he can't buy Twitter

Elon Musk reportedly started moving on Twitter within 10 days

CEO of Tesla Elon Musk Willing to invest up to $15 billion of his own money to take away Twitter private and will make an offer within 10 days, reports Tuesday.

New York Post mentioned On Tuesday, Musk, with a 9.1% stake in the social media company, hired Morgan Stanley to help raise an additional $10 billion.

Tesla Motors CEO Elon Musk speaks at the grand opening ceremony of Tesla Giga Texas maker “Cyber ​​Rodeo” in Austin, Texas, on April 7, 2022. (Susan Cordero/AFP via Getty Images/Getty Images)

The Post, citing two sources close to the situation, reported that Musk’s massive $43 billion bid for the company — or $54.20 a share — might require borrowing both against the company and his stock as well as raising money from private equity investors.

Reportedly, an estimated $10-15 billion Musk is willing to invest is well above his $3.4 billion stake in the company.

Sources told The Post that co-investors will collectively hold more shares in Twitter, but that Musk will remain the largest single shareholder.

Elon Musk tweets his philosophy on social media politics amid bid to buy Twitter

Participating investors will reportedly fund a bid that is directly hostile to Twitter shareholders, which is what happens when an outside investor’s acquisition ambitions do not have the approval or blessing of management.

Musk will fire the tendering officer in about 10 days, according to the newspaper. It remains to be seen how successful Musk will raise the necessary funds, as his penchant for controversy has alienated some investors.

Last week, Twitter adopted a measure known as the “poison pill,” which refers to a tactic companies use to prevent an investor from accumulating a majority stake in a company.

If any shareholder accumulates 15% of the company’s stock in a purchase not approved by the board of directors, the other shareholders will receive the right to purchase additional shares at a discount that mitigates the 9.1% recently purchased by Musk.

For Musk’s proposal to be successful, he would need to obtain the full approval of the majority of Twitter contributors.

DESANTIS looks forward to making the Twitter Board accountable for responding to Musk’s purchase offer

FOX Business reached out to Musk for comment but was not responded to prior to publication. Twitter declined to comment.

Twitter leaves the door open to the possibility of negotiating with Musk or any other suitor. In a structured filing on Monday, Twitter’s board said the shareholders’ rights agreement should not interfere with any merger or offer approved by the board.

Elon Musk

Elon Musk points out during a press conference at SpaceX’s Starbase facility near the village of Boca Chica in southern Texas on February 10, 2022. (Photo by Jim Watson/AFP via Getty Images/Getty Images)

When Musk announced his offer publicly, he did not provide any details about the funding, but such a disclosure could improve his chances. He can raise money by borrowing billions using his stakes in Tesla and SpaceX as collateral, and he can bring in other investors.

Effective April 25, the toxic pill will give shareholders the right to buy one thousandth part of preferred stock for each common share they own, at $210. The rights are activated if any person or group of investors purchases 15% or more of the company’s shares without the approval of the Board of Directors.

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The preferred stock will have the same voting rights as common stock, according to the filing, which Musk doesn’t specifically mention.

The Associated Press contributed to this report.