The game isn’t over yet, but we could be getting closer to having some more substantial information on the likelihood of Elon Musk taking over Twitter in the near future.
Musk, who famously said he has a “plan b” when he initially offered to buy Twitter, appears to be showing more of his cards now. In our estimation, he probably has a plan c and d as well, but only time will tell.
Twitter hasn’t officially said no to selling out, but they haven’t said yes and have adopted a “poison pill” plan while the board considers the offer and looks at all their options. In our view, the board is simply buying time as they do not want Musk running the company except for maybe one or two of the members possibly.
Reports say Musk has secured $46.5 billion in funding to attempt a tender offer to take over Twitter should they not accept his original offer of $54.20 per share. The funding includes various different sources of capital, including but not limited to Musk’s own cash and the billionaire leveraging against his Tesla shares.
CNBC reported in part that:
Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing.
Twitter has issued an official statement:
“As previously announced and communicated to Mr. Musk directly, the Board is committed to conducting a careful, comprehensive and deliberate review to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders,” the spokesperson said according to reports.
As per our “Game Over?” question, no it’s not over yet but we could be much closer to finding out the ending to this story as Musk and his allies begin to circle the wagons and it’s looking more and more likely in our view that the takeover will eventually happen.
We recently also reported that Musk may have at least one “inside man” on the board. It sounds like he is playing chess and Parag Agrawal, the current CEO, may be playing checkers or perhaps “Hungry Hungry Hippos”…