Financial News: Twitter reconsiders Musk bid

Financial News:

Twitter reconsiders Musk bid

Elon Musk

Initially opposed to Tesla CEO Elon Musk taking over Twitter, the company is warming up to the idea after the billionaire secured the required $43 billion in funding.

Musk, who owns approximately 9% of Twitter stock, has indicated he is mulling a tender offer, in which other shareholders promise their stock to him at a certain price and date. If enough shareholders agree, Musk may be able to use that to pressure the board to remove its "poison pill" argument.

But Musk hasn't decided.

The poison pill can drastically increase takeover costs. A 15% ownership in Twitter would result in a large dividend to stockholders, perhaps bankrupting Twitter.

Photo: Elon Reeve Musk FRS is an entrepreneur, investor, and business magnate. He is the founder, CEO, and Chief Engineer at SpaceX; early-stage investor, CEO, and Product Architect of Tesla, Inc.; founder of The Boring Company; and co-founder of Neuralink and OpenAI.

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Content ID: 1650877939 Created Monday, April 25, 2022 9:12 AM UTC by Aaron Stipkovich, Updated Thursday, April 28, 2022 9:25 PM UTC by Aaron Stipkovich.