Twitter board ‘seriously’ starts considering Musk’s bid offer; Deal could be finalized by this week

Lavina Daryanani
Source: Fox News

“Never say never,” they say. Well, it doesn’t take time for people to change their minds. Usually, the revelation of a new perspective does the trick. However, at times, external pressure triggers a stance flip.

As a matter of fact, something similar has been happening in the Musk-Twitter saga. While it was initially perceived that Musk’s bid to acquire Twitter would not see sunlight, the latest developments show that the doors remain to be wide open.

Per recent reports, Twitter kicked off deal negotiations with Elon Musk on Sunday after he “wooed” many of the social media company’s shareholders with financing details on his $43 billion acquisition offer.

In fact, per Wall Street Journal, they could finalize a deal as soon as this week itself.

Weekend drama

Per Reuters, the company’s decision to engage with Musk does not essentially give the surety that it would accept his $54.20 per share bid. It just means that the microblogging and social networking platform is now exploring whether or not a sale of the company to Musk is feasible on attractive terms.

Well, it wouldn’t be wrong to claim that Musk is a people person. Time and again he has voiced his opinion on n number of subjects on social media. However, the Tesla exec has been meeting Twitter shareholders, seeking support for his bid IRL over the past few days.

As a result, many shareholders have reached out to the company after Musk chalked out a detailed financing plan for his bid on Thursday and urged it not to let the opportunity for a deal slip away.

Per Reuters, Musk’s insistence that his bid for Twitter is his “best and final” has emerged as a hurdle in the deal negotiations. The report added,

“Nevertheless, Twitter’s board has decided to engage with Musk to gather more information on his ability to complete the deal, and potentially get better terms… The company has not yet decided if it will explore a sale to put pressure on Musk to raise his bid”

Here it is also worth noting that the social media giant wants to know more about any active investigations by regulators into Musk that could potentially be a risk to the deal. It is simultaneously also looking into whether regulators in any of the major markets it operates would object to Musk owning the company.

Poison pill

On 15 April, Twitter’s board of directors adopted a poison pill defense to protect the company from Elon Musk. As such, the so-called “poison pill” Twitter had proposed to use against Musk’s potential takeover is a mechanism that could force the outspoken entrepreneur into negotiations.

Such a “pill” would allow other Twitter shareholders to purchase shares at half price, increasing the number of shares in circulation and weakening Musk’s influence. In effect, it would then be nearly impossible for the Tesla exec to take total control of the company without having to spend significantly more than he had originally planned.

On one hand, while the poison pill would prevent Twitter shareholders from tendering their shares, the company is “worried” that its negotiating hand would weaken considerably if it was shown to be going against the will of many of its investors.

With shareholders approaching the board directly, the pendulum is oscillating in Musk’s favor at the moment, and looks like the poison pill wasn’t indeed hard to swallow for the Tesla exec.

Dogecoin’s price front

Throughout history, Dogecoin’s price has been very sensitive to Elon’s actions. It reacted positively when the initial bid details were out. However now, despite the ‘serious‘ talks commencing, it was merely valued at $0.127, down by 5% in the day’s trade.

Twitter’s share price, on the other hand, closed at $48.93, up by 3.95% on Friday. Depending on what level it opens on Monday, the broader investor sentiment concerning the said development would come to light.