The Twitter Board met on Sunday to tackle the burgeoning problem of Elon Musk’s plans to buy Twitter. Elon Musk is deadly serious about buying Twitter and making it a private company. Board members may be pondering over Elon’s offer, which seems better than the current share price of Twitter.
Why did the Twitter Board Meet?
Eleven members of the Twitter Board met on Sunday to discuss the pending issue. Elon Musk made a $46.5 billion offer to buy Twitter. The announcement sounded delirious, but Musk made moves to acquire financing for his billions of dollars offer. He has supposedly arranged $13 billion from Morgan Stanley and $12.5 billion in loans against his Tesla stock. The remaining $21 billion may come from equity financing strategies.
After seeing Elon Musk’s zeal to arrange finances, the Twitter board is now seriously considering selling the company. The board met on Sunday to discuss plans for an agreement that would benefit both parties. Details of the event weren’t shared by the members who made all this a big speculation.
Twitter’s official statement on Sunday night reads: “As previously announced, the Board is continuing to conduct a careful, comprehensive, and deliberate review to determine the course of action in the best interests of the Company and all Twitter stockholders.“
Elon Musk’s Twitter Timeline
Elon Musk’s current offer price per share sounds generous, but there is more than meets the eye. As per analysts, Twitter isn’t interested in selling the company to Musk if the offer is below $60 per share. There is a valid reason behind the number Twitter’s stock rose to $70 a share last year. So, the Twitter board might be drafting a counter-offer to create a better deal.
Elon Musk began buying shares of Twitter in January and has since been on a costly investing spree. He occupied more than 9 percent of Twitter shares, after which the board offered him a seat. Parag Agarwal even expressed jubilation about the idea but later confirmed in a tweet that Elon wouldn’t join the board.
Elon Musk began creating polls about adding an edit button for Twitter. He also conducted some polls and posted bizarre ideas about his perfect version of Twitter. Later, he came up with an offer of $46.5 billion to buy Twitter and make it his private social media platform.
There is no doubt that Elon Musk can buy Twitter. His recent actions for amassing finance showcase that he is more serious than ever. But it is up to the Twitter Board to keep resisting until they finally cave in.