USA Updates Musk in talks with investors to take over Twitter: Report | The Daily Wire TOU

USA Updates  Musk in talks with investors to take over Twitter: Report |  The Daily Wire

 TOU

USA Updates Musk in talks with investors to take over Twitter: Report | The Daily Wire

TOU

Elon Musk, the world’s richest man, is reportedly in talks with investors to join his bid to buy social media platform Twitter.

Sources familiar with the matter said that the partnership could be announced in a few days. New York Post, Musk earlier this week launched a bid to take over the social media giant with an offer of $54.20 per share for all shares of Twitter, valued at more than $40 billion.

While Musk’s potential partners are unknown, sources told the Post that one could be Silver Lake Partners, a company Musk has worked with in the past and is co-operated by one of Twitter’s board of directors. As the New York Post reported:

One possibility, the sources said: in collaboration with private-equity firm Silver Lake Partners, which plans to co-invest with it in 2018, when it was considering taking Tesla private.

Silver Lake co-CEO Egon Durban is a Twitter board member and led Musk’s deal team during a failed 2018 attempt to take Tesla private, sources said. Silver Lake declined to comment.

Reports of Musk’s strategy come after the Twitter board inserted a “poison pill” into its bylaws to prevent a hostile takeover of Musk. Twitter’s board on Friday passed a shareholder rights plan that would allow board members to purchase additional stock at a discount if a single entity purchases at least 15% of Twitter’s total stock. As The Daily Wire reported:

Twitter’s desperate gamble on Friday to halt Elon Musk’s bid for a hostile takeover is technically known as a shareholder rights plan, but investors are calling it a “poison pill.” Here’s how it works, and what could happen next:

A poison pill allows other shareholders – but not buyers – to scoop up newly minted shares at a discount, forcing the target to swallow “economic poison” by diluting their shares to boost their investments. Happened. The move is a surefire sign that the board is not interested in a potentially hostile takeover, despite the potential benefits for shareholders. If the maneuver succeeds, shareholders are sure to flood the courts with lawsuits, accusing Twitter’s directors of violating their fiduciary duties.

Now there are three possible outcomes, none of which are ideal for Twitter’s current board: Musk could win by successfully launching a proxy contest to remove directors and eliminate the poison pill; Musk forces the company to find a “white knight” or alternative buyer, potentially at a higher price, thus making his shares more valuable; Musk walks away and the company and board face a plethora of lawsuits because shareholders blame him for hurting the value of their stock.

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