Elon Musk Wins Over Twitter’s Shareholders Trust

 Elon Musk Wins Over Twitter’s Shareholders Trust

As per sources, Twitter has once again started fresh negotiations with billionaire Elon Musk on Sunday, April 24, for a complete takeover of the company. In recent days, Musk has managed to woo Twitter (NYSE: TWTR) shareholders who have thrown their weight backing the billionaire for a $43 billion takeover offer.

Last Thursday, Elon Musk outlined a detailed financing plan for the Twitter takeover. He said that Twitter needs to be taken private to make it a genuine and trusted platform for free speech. Musk has put a bid offer at $54.20 per TWTR stock which is currently trading at $48.0.

Sources familiar with the matter said: “Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate”. Citing sources familiar with the matter, WSJ reported:

“Mr. Musk met privately Friday with several shareholders of the company to extol the virtues of his proposal while repeating that the board has a “yes-or-no” decision to make”. He further “”pledged to solve the free-speech issues he sees as plaguing the platform and the country more broadly, whether his bid succeeds or not”.

Musk also reached out to some select shareholders of Twitter in a series of video calls while focusing on the actively managed funds.

Elon Musk’s War With Twitter

After Elon Musk made a bid for a complete takeover, social media giant Twitter decided to adopt the “poison pill”. The goal was to prevent Musk from raising more than a 9% stake in the company. However, Musk launched a tender offer while garnering shareholders’ support for this bid.

However, some of the existing shareholders of Twitter have argued that the proposed bid by Musk is below the intrinsic value of the company. But sources said that Musk can increase his bid in that case! One of the fund managers who has invested in Twitter said:

“I wouldn’t be surprised to wake up next week and see Musk raise what he called his best and final offer to possibly $64.20 per share”.

Earlier, Elon Musk proposed some changes with a paid subscription model for Twitter Blue services to control the bot army. He even proposed Dogecoin payments for this subscription.

Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.

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