Elon Musk’s buyout attempt for Twitter is allegedly being reconsidered by the social media platform’s board of directors. According to the Wall Street Journal, the purchase may be completed this week.
Musk has offered $43 billion for the acquisition. On April 24, the two parties apparently discussed the acquisition’s specifics, and some progress has been made. According to sources, there are still some obstacles to be overcome, but the deal appears to be moving forward.
Mr. Musk has previously stated that he is considering making a tender offer to direct his offer to shareholders.
Even if he were to win considerable shareholder support in a tender offer that is far from certain, he would still need to get through the company’s poison pill, a legal move that essentially prevents him from increasing his holding to 15% or higher.
The raging interest in acquiring Twitter
There is, however, no assurance that an agreement will be reached between Musk and Twitter. Musk isn’t the only one interested in buying Twitter; other companies have expressed interest in acquiring the social media network in recent weeks.
Musk has stated that if and when the acquisition is completed, the board of directors’ salary will be null.
The agreement has sparked a lot of debate and criticism. Musk has stated that his purpose for purchasing the platform is to encourage free expression, but many fear that it would further polarise an already polarised site.
Some fear that Musk’s acquisition may result in a mass exodus from the corporation. This might have a huge influence as a platform that acts as a rapid voice to the public for politicians and other important persons.
The announcement has obviously had a significant impact on Twitter’s shares. It was pushed to new highs following Musk’s announcement but has subsequently fallen.
Overall, the stock has increased year over year. However, it was at a low point at the start of 2022.
Musk’s acquisition accounted for a large portion of the stock’s gain, which boosted the price to $48 and has remained there since. The stock continues to fall, putting further pressure on the board members to assuage shareholder criticism.