Under pressure from shareholders, Twitter to reconsider Musk's buyout offer

Edited By: Moohita Kaur Garg
Washington, United States Updated: Apr 25, 2022, 10:15 AM(IST)

The report states that not only is Twitter taking a fresh look at Musk’s offer, but that the company is more likely to negotiate this time around. Photograph:( AFP )

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As per a report by the Wall Street Journal, the discussions between Twitter and Musk are ongoing and follow a meeting between the Tesla CEO and shareholders of the company

If reports are to be believed Twitter is now reconsidering Elon Musk’s buyout proposal.

This comes as a shock after the social media giant’s board resorted to the “poison pill” approach to negate Musk’s attempts at a takeover.

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As per a report by the Wall Street Journal, the discussions between Twitter and Musk are ongoing and follow a meeting between the Tesla CEO and shareholders of the company.

"The potential turnabout on Twitter’s part comes after Mr. Musk met privately Friday with several shareholders of the company," the business daily reported, citing sources familiar with the matter.

According to the Journal, Musk has also promised to address the free-speech issues that he claims affect “the platform and the country more broadly, whether his bid succeeds or not".

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Musk "made his pitch to select shareholders in a series of video calls, with a focus on actively managed funds... in hopes that they could sway the company’s decision", reported Wall Street Journal.

The report states that not only is Twitter taking a fresh look at Musk’s offer, but that the company is more likely to negotiate this time around.

On Thursday, the billionaire announced that he has secured around $46.5 billion to finance the transaction and that he plans to make a direct appeal to shareholders.

As per a BBC report, he plans to back his bid with the backing of Morgan Stanley among other financial institutions.

Also read | Stung by the 'poison' pill, Elon Musk takes a dig at Twitter board's salaries

The opposition of the Twitter board is now widely known, as is the “poison pill” they swallowed to make it more difficult for Musk to acquire from the market a share higher than 15 per cent.

However, following Musk's announcement of the fundraising proposal, a number of Twitter shareholders allegedly contacted the firm, urging it not to miss out on a potentially lucrative deal.

(With inputs from agencies)

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