Twitter Board Meets Musk to Discuss His Bid

Twitter Board Meets Musk to Discuss His Bid

Twitter's board of directors allegedly met with Elon Musk over the weekend to discuss a $43 billion (£33.6 billion) purchase offer for the social media giant.
After the Tesla boss first revealed his offer, Twitter management rolled out what it called a "poison pill" strategy to ward off potential hostile purchases.
Mr Musk intends to fund his efforts with the help of Morgan Stanley and other financial institutions in the United States.

Twitter Board Meets Musk to Discuss His Bid

A Twitter spokesperson declined to comment on the report.
According to Reuters, the New York Times, and Bloomberg, citing unnamed sources, details of Musk's proposed financing were provided to US authorities on Thursday, prompting the 11-member Twitter board to seriously consider a possible deal.
According to regulatory filings, Musk, who owns more than 9% of Twitter, has set up a $46.5 billion funding package for his bid.

The funds will be raised through a combination of his personal assets and the backing of Wall Street banking giant Morgan Stanley and other companies.

Following Musk's announcement of the funding proposal, a number of Twitter shareholders allegedly contacted the company, urging it not to miss the opportunity for a prospective purchase.
According to Dan Ives, an analyst at investment firm Wedbush Securities, many investors will see the discussions as "the beginning of Twitter's end as a public company, with Musk likely now on the road to buying the company unless a second bidder enters the market."

A hostile takeover of Musk, as the world's richest man, would put "additional pressure on the board with their backs to the wall in the Game of Thrones war for Twitter," said Mr. Ives.
Musk denied a position on Twitter's board earlier this month, which would have limited the number of shares he could acquire. On April 14, he made an unsolicited offer to the company.

The next day, Twitter's board of directors revealed a strategy to defend against a possible hostile takeover by implementing a "limited-length shareholder rights plan", known as the "poison pill".
This move discouraged anyone from owning more than a 15% stake in the company. It does this by allowing people to buy additional shares in the company at a discount.

A hostile takeover offer occurs when a person or company tries to take over another company against the intentions of the target company's management.