[The Epoch Times, April 25, 2022](The Epoch Times reporter Li Xin comprehensive report) People familiar with the matter revealed that,TwitterThe company (Twitter Inc.) isacquisitionProblems with ElonMusk(Elon Musk) in advanced talks and a deal could be finalized on Monday (April 25).
After the billionaire announced a $43 billion dealacquisitionAfter 11 days for the social media company, things took a dramatic turn. The two sides worked through the night to hammer out a $54.20-a-share deal, sources said, according to The Wall Street Journal. There’s no guarantee they’ll reach a deal yet.
It was expected thatTwitterwould refuseMuskThe takeover was proposed on April 14, and a “poison pill” was introduced to prevent him from increasing his stake. But after Musk took a series of steps, Twitter changed its stance and opened the door to negotiations.
Archyde.com reported on Sunday night that Twitter’s decision to approach Musk earlier in the day didn’t mean it would accept his $54.20 per share offer, sources said. But the source added that it marks Twitter is now exploring the possibility of selling the company to Musk on attractive terms.
Elon Musk, the CEO of electric car giant Tesla, has been tweeting over the past few days.shareholderThey met to seek support for their acquisition. He has said that Twitter needs to be privatized so that it can grow and become a platform with true freedom of speech.
Archyde.com also reported earlier on Sunday that after Musk outlined a detailed acquisition financing plan last Thursday, many of Twitter’sshareholderThe company was contacted and urged not to miss out on a deal.
Musk insisted that his bid for Twitter was his “best and final” offer, the sources said, and reiterated to Twitter’s chairman in recent days that he would not budge on price, which has becomedeal negotiationan obstacle in. Still, Twitter’s board has decided to reach out to Musk to gather more information about his ability to close the deal and potentially make better terms for the company, the source added.
Twitter has not yet decided whether it will explore selling the company to pressure Musk to raise its bid, the sources said. The people declined to be identified because discussions about the deal are confidential.
One of the sources said Twitter wanted to learn more about any active regulatory investigations of Musk, including the U.S. Securities and Exchange Commission (SEC), as it would pose a risk to the deal being completed.
Twitter is also investigating whether regulators in the major markets in which it operates would object to Musk owning the company, the sources added. If Twitter determines that selling the company to Musk is risky, it could demand a sizable breakup fee, the sources said.
After Twitter took a poison pill to prevent Musk from further increasing his stake in the company, Musk said he would launch a tender offer to make a direct offer to shareholders to gain shareholder support.
One issue Twitter’s board is weighing is that unless it seeks to negotiate a deal with Musk, many shareholders are likely to back him in the tender offer, the sources said.
While the poison pill would prevent Twitter shareholders from bidding on its stock, the company fears that its negotiating advantage will be significantly diminished if it proves to be against the wishes of many investors, the sources added.
Twitter with Muskdeal negotiationShares of Twitter rose more than 5% in premarket trading on Monday following the news.
Responsible editor: Ye Ziwei#