The world’s richest man wants to take the microblogging platform private
Elon Musk is reportedly willing to spend between $10-15 billion of his own money to take Twitter private, and is planning to launch a tender offer, according to two sources familiar with the matter as quoted by the New York Post.
The bid will be made in about 10 days, the daily reported on Tuesday, adding that the billionaire has tapped Morgan Stanley to raise another $10 billion. Musk, who had previously purchased 9.1% of Twitter’s shares, may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars.
Last week, Musk offered to buy Twitter for $54.20 a share, or about $43 billion, well above the company’s current valuation.
On Friday, the social media company adopted a so-called poison pill strategy to protect itself from a potential hostile takeover. The tactic allows shareholders to buy company stock in the future at a discount, thereby diluting the stake of the entity attempting the takeover.
The eccentric billionaire posted a cryptic tweet consisting of a series of dashes for a missing word followed by “is the Night”, perhaps hinting at the possibility of a hostile bid. Earlier this week, Musk tweeted “Love Me Tender”, an Elvis Presley song, after Twitter opted for a plan to sell shares at a discount to prevent any attempt by shareholders to amass a stake of more than 15%.
Following Musk’s bid, more private-equity firms have expressed interest in participating in a deal for Twitter, people familiar with the matter said as quoted by Reuters. The interest emerged after Thoma Bravo, a technology-focused private-equity firm, contacted the social media platform to explore a buyout that would challenge Musk’s offer.
Apollo Global Management is reportedly seeking to provide financing for any deal and is open to working with Musk or any other bidder.