Round 2: Twitter is reconsidering selling itself to Elon Musk
With no other bids received, the Twitter board is now warming up to Elon Musk's acquisition offer and is looking to negotiate a better deal.
Culture & Entertainment
Eleven members of the Board of Directors at Twitter met Elon Musk on Sunday to further discuss a potential sale of the social media platform, paving the way for it to be private once again, The New York Times reported.
The move comes after Elon Musk revealed his plan to financially back his offer in a Securities and Exchange Commission (SEC) filing last week. It seems that the Twitter board is now warming up to the idea of a sale to Musk, even though the company has put up its defenses to avoid a hostile takeover.
Under pressure from Twitter shareholders
The Tesla CEO has used every opportunity to target the Board of Directors, saying that their interests are not aligned with that of the shareholders. In what appears to be a veiled tweet, Musk has also suggested that he bypass the board and make a direct offer to Twitter's shareholders to buy the stock from them.
Twitter polls conducted by Musk himself show that his plan for a takeover of the social platform receives significant support, even though it is hard to tell how many pollsters are actually shareholders.
While the board had not rejected Musk's offer outright, the 'poison-pill' defense was considered a delaying strategy, but some experts believed it would give the board time to shop around and see if a better deal was available.
Is it Musk's 'best and final offer'?
With no other major buyer throwing their hat in the ring, Musk's offer is the only one at hand, and it is now up to the Board to accept or reject it. At $54.20 a share, Musk has declared that his offer carries a premium over Twitter's current stock price and below the highs of $70 that the social media company saw earlier this year.
The board is likely looking at Musk to increase his bid to the $60 mark, The New York Times reported. However, there are also some other concerns that the board wants to be addressed.
The last time Musk declared he would take a company private, he backed out. The move brought him the ire of the SEC, and the regulator will likely watch him very closely about acquiring Twitter. The board wants Musk to put down some monetary protections in case the deal does not go through, Engadget reported. It is likely that the board will reveal more about its move after the company's Q1 earnings call this Thursday.
However, by Musk's trolling of Bill Gates, one can probably gauge what the Tesla CEO will do once he owns Twitter.
With no further twists in this tale, the Twitter saga might come to an end this week.