What initially looked like a joke becomes more serious. Twitter’s board of directors met over the weekend to discuss Elon Musk’s offer more seriously, according to the wall street journal and the New York Times. The two American newspapers obtained the same information, namely that the social network could accept the CEO’s offer and sell its shares at $54.2 each. For his part, Elon Musk went around a few banks and friends to secure no less than 46.5 billion dollars.
Everything went very quickly, since we learned at the beginning of the month that Elon Musk had discreetly bought more than 9% of Twitter, which made him the largest shareholder. The social network had tried to control what looked like a hostile acquisition by offering him a place on the board of directors the next day, a place refused a few days later by the person concerned. Since then, Elon Musk has revised his ambitions upwards and offered to buy all of the shares of Twitter to remove the company from the stock market.
Even if he is the richest man in the world, you don’t collect tens of billions of dollars at the snap of a finger. Elon Musk nevertheless has some equally fortunate acquaintances and he has thus obtained financing from several players, including the bank Morgan Stanley. The boss of Tesla would thus put “only” 21 billion dollars out of his pocket, the rest would be provided by these third parties. This is proof of the seriousness of his offer and this is what would have justified the weekend meeting, according to the two daily newspapers.
The two sources, however, remain cautious about the agreement and its chances of success. Twitter should however decide quickly, since the company must announce its financial results on Thursday and the answer would be given on this occasion or even in the days preceding this deadline.