Published , by Asif Khan
Published , by Asif Khan
Twitter's board of directors are rumored to be caving to shareholder pressure to take Elon Musk's deal. It appears that Elon Musk may be willing to negotiate a price higher than the original $43 billion offer. It is now more likely than ever that Elon Musk will strike a deal with the social media company as soon as this week.
This is a somewhat strange about-face for the Twitter board of directors, but Musk even pointed out in in a reply to Twitter Co-founder Jack Dorsey that the board had a very low level of ownership relative to a lot of companies. This appears to have angered shareholders to the point that the board had to go back on their decision to enact a poison pill to prevent a hostile takeover from Elon Musk.
Musk was rumored to be working with several large institutions on a partially debt-financed deal that would top the previous $43 billion attempt. Rumored to be $46.5 billion, that would be a nice gain for TWTR shareholders from Friday's close of $48.92/share.
This Thursday, Twitter's earnings results will be reported, and many analysts believe the company will take some time during the conference call to address the talks with Elon. There is also a chance that Musk and Twitter will have come to an agreement before the results are even posted.
Some things about a Post-Elon Twitter sound horrifying to users, but Musk has pitched an edit tweet button, and seems hell-bent on getting rid of all the verified crypto bots that spam his replies. With 81 million followers on Twitter, you really have to wonder what percent of them are bots.
We will be sure to keep everyone updated as this ridiculous story continues to unfold.
This article is only meant for educational purposes, and should not be taken as investment advice. Please consider your own investment time horizon, risk tolerance, and consult with a financial advisor before acting on this information.
Full Disclosure:
At the time of this article, Shacknews primary shareholder Asif A. Khan, his family members, or his company Virtue LLC had the following positions:
Long Twitter via TWTR shares