The board can be contemplating soliciting affords from different corporations that will need to purchase Twitter, one of many individuals conversant in its plans mentioned, one other frequent transfer amongst takeover targets. It was not clear if Twitter had approached anybody but.
A deal might require Mr. Musk to acquire $15 billion to twenty billion in debt financing, mentioned Dan Ives, an analyst at Wedbush Securities. Although Mr. Musk is the wealthiest man on the planet, a lot of his value is tied up in Tesla shares.
Twitter might query Mr. Musk’s capacity to finance the deal or declare it undervalues the corporate. The provide is a 54 p.c premium over the share value the day earlier than he started investing within the firm in late January. However shares of Twitter traded greater than Mr. Musk’s bid for a lot of final yr.
When Mr. Musk announced his stake in Twitter, a number of board members welcomed him, together with Twitter’s co-founder Jack Dorsey. Twitter supplied Mr. Musk a seat in its boardroom, a transfer that executives hoped would stop him from publicly criticizing the corporate. However the welcome quickly soured. Mr. Musk turned down the board seat.
By Wednesday, Mr. Musk was able to disclose his subsequent transfer. In a message to Bret Taylor, the chairman of Twitter’s board, Mr. Musk mentioned: “I imagine in its potential to be the platform without cost speech across the globe, and I imagine free speech is a societal crucial for a functioning democracy,” in keeping with a submitting with the Securities and Alternate Fee that was later made public. “Twitter must be reworked as a non-public firm.”
Mr. Taylor, a co-chief govt of Salesforce, has served on Twitter’s board since 2016, when Salesforce thought-about shopping for Twitter. Mr. Taylor joined Salesforce a yr later, after it acquired his personal firm, Quip.
One other necessary board member is Egon Durban, a co-chief of Silver Lake, a non-public funding agency. Mr. Durban joined Twitter’s board in 2020 as a part of a deal the corporate struck with another activist investor, Elliot Administration, which needed to shake up management. Mr. Dorsey is pleasant with Mr. Musk, however he is set to leave the Twitter board subsequent month.