Twitter, which went public in 2013, has additionally had a tumultuous company historical past. It has repeatedly handled board dysfunction and drama with its founders, and was courted by different consumers previously, together with Disney and Salesforce. In 2020, the activist funding agency Elliott Administration took a stake in Twitter and referred to as for Jack Dorsey, one in all its founders, to resign as chief govt. Mr. Dorsey stepped down final yr.
“This firm may be very a lot undermonetized, particularly in comparison with different platforms and rivals like Fb,” stated Pinar Yildirim, a professor of promoting on the College of Pennsylvania Wharton Faculty of Enterprise. “If you happen to have a look at it from a degree of pure enterprise worth, there’s undoubtedly room for enchancment.”
In a press release, Bret Taylor, Twitter’s chairman, stated that the board had “carried out a considerate and complete course of” on Mr. Musk’s bid and that the deal would “ship a considerable money premium” for shareholders.
Regulators are unlikely to significantly problem the transaction, former antitrust officers stated, for the reason that authorities mostly intervenes to cease a deal when an organization is shopping for a competitor.
The deal got here collectively in a matter of weeks. Mr. Musk, who additionally leads the electrical carmaker Tesla and the rocket maker SpaceX, started shopping for shares of Twitter in January and disclosed this month that he had amassed a stake of greater than 9 %.
That instantly set off a guessing sport over what Mr. Musk deliberate to do with the platform. Twitter’s executives initially welcomed him to the board of administrators, however he reversed course inside days and as a substitute started a bid to purchase the corporate outright.
Any settlement initially appeared unlikely as a result of the entrepreneur didn’t say how he would finance the deal. Twitter’s executives appeared skeptical, too, provided that it was troublesome to discern how a lot Mr. Musk may be jesting. In 2018, for instance, he tweeted that he deliberate to take Tesla non-public and inaccurately claimed that he had “funding secured” for such a deal.