Twitter shareholder board members are considering selling their stake to Elon Musk. The world’s richest man and CEO of Tesla, after temporarily becoming the social network’s largest shareholder, is now bidding to buy the entire company with an offer of more than $46.5 billion.
According to two inside Twitter sources consulted by The New York Times, last Monday, members of the social network’s board communicated with Musk to discuss the billionaire’s offer. The two sides discussed details such as a date to close a potential deal that would take the company private again.
Since the market learned of Musk’s entry into Twitter, the stock price rose by nearly $10, since then it has remained to hover around $49. The Tesla CEO’s takeover bid will pay $54.20 per share, which means it would pay a 10 percent premium.
As EFE news agency reports, at 8:10 local time on the New York Stock Exchange, more than an hour before the bell rang, Twitter was up 5.25 % to $51.50 per share on the possibility that it will accept a takeover bid later today.
Elon Musk launches his best offer to Twitter’s shareholder meeting
Musk initially offered $43 billion for Twitter. However, he raised his offer to $46.5 billion. Tesla’s CEO claims to have guaranteed the financing of the purchase of the social network with $21 billion that will come from his equity.
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Investment bank Morgan Stanley will put up the rest of the money, with $13 billion to be lent directly to Musk, and another $12.5 billion to be disbursed in exchange for offering Tesla shares as collateral to guarantee repayment of the loan.