Elon Musk explores takeover bid for Twitter


Tesla and SpaceX CEO Elon Musk is reportedly exploring a takeover bid for Twitter and securing financing for the deal, including $25.5 billion in loans from major banks. However, analysts warn that the Twitter board’s “poison pill” defense could still prevent a takeover.

A takeover bid is an open offer to shareholders of a company to sell their shares to a bidder at a specified price. If enough shareholders sell to Musk, he could theoretically accumulate enough to acquire a majority stake in the company.

(JIM WATSON/Getty Images, BNN Edition)

Even if that happened, Twitter’s “poison pill” defense would still be activated, allowing other shareholders to buy more shares at a discount, diluting Musk’s stake.

Morgan Stanley, which is Twitter’s third-largest stakeholder, is leading Musk’s new effort – although the tech billionaire has yet to decide whether to go ahead with the takeover bid .

In a filing with the SEC, Musk said he has not yet decided whether to make a takeover bid or pursue another course of action.

Musk teased the new strategy in a tweet last week, posting the lyrics to the song “Love Me Tender,” hinting that a takeover bid was imminent.

In a number of public statements, Musk has said the motivations behind his attempted takeover of Twitter lie in his commitment to free speech.

Describing himself as a free speech absolutist and saying free speech is “important to the future of human civilization”, Musk said Twitter in its current form is failing to realize its potential as a than global city square.

In his initial offer to Twitter’s board, Musk said he believed “free speech is a societal imperative for a functioning democracy,” but that Twitter “will not thrive or serve that societal imperative in its present form.

Allum Bokhari is Breitbart News’ Senior Technology Correspondent. He is the author of #DELETED: Big Tech’s battle to erase the Trump movement and steal the election.




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