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Twitter – Daily Local in talks with Musk over bid to buy platform

Associated Press

According to media reports, Twitter’s board is in talks with Tesla CEO Elon Musk about his bid to buy a social media platform, and the deal could be announced as early as Monday.

Twitter and Musk spoke early Monday, the New York Times reported, within two weeks of the billionaire first revealing a large stake in the company.

Musk said last week he raised $ 46.5 billion to buy Twitter and urged the company’s board to negotiate a deal.

The Times quoted people who knew the unspecified situation and said they were discussing details such as timelines and fees in the event of an agreement being signed and collapsed. People said the situation was fluid and fast-moving.

Twitter Inc.’s share price rose 4% on Monday.

Twitter has enacted anti-takeover measures called poison pills that can make takeover attempts exorbitantly expensive. However, according to The Wall Street Journal, which first reported that negotiations were underway, the board decided to negotiate after updating his proposal to show that Musk had secured funding.

Musk says he wants to buy Twitter because he feels that Twitter hasn’t fully realized its potential as a platform for free speech. Twitter said it “needs to transform as a private company” in order to build trust with its users and better serve what it calls the “social demands” of free speech.

Musk describes himself as an “absolutist of free speech,” but is also known to block or despise other Twitter users who ask or disagree with him.

Over the past few weeks, he has been offered many suggestions to the company, from relaxing content restrictions, such as the rule to suspend former President Donald Trump’s account, to removing fake and automated account platforms. Announced the change.

Mask’s rival bidders may not step up immediately for fear of Byzantine’s job of moderating content on the platform.

“The board of directors on Twitter couldn’t find a white knight, and with Mask funding, the board’s clock was essentially midnight,” said Dan Ives, who follows Wedbush Securities on Twitter. That’s why negotiations have begun. “

Twitter’s user base remains much smaller than its rivals such as Facebook and TikTok, but the service is popular with celebrities, world leaders, journalists and intellectuals. Musk himself is a prolific tweeter with over 83 million followers, rivaling some pop stars in the ranks of the most followed accounts.

On April 14, Musk announced a proposal to buy a social media platform for $ 54.20 per share, or about $ 43 billion, but didn’t say how to finance the acquisition at the time.

Last week, he said in a document filed with US securities regulators that the money came from Morgan Stanley and other banks, some of which was secured by his huge stake in Tesla.

Twitter has not commented.

According to Forbes, Mask is the wealthiest person in the world, with a fortune of nearly $ 279 billion. But much of his money is tied to Tesla’s stock — he owns about 17% of electric car companies, according to FactSet, worth more than $ 1 trillion — and his private universe. The company SpaceX. It is unknown how much cash the mask has.

Kevin Kaiser, a professor of finance at the University of Pennsylvania’s Wharton School, said Twitter’s board of directors has the flexibility to offer masks not only in finance, but also in detail about whether his company’s plans are in the best interests. He said he could judge.

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AP business writer Kelvin Chan reported from London.

Twitter – Daily Local in talks with Musk over bid to buy platform

Source link Twitter – Daily Local in talks with Musk over bid to buy platform

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