Elon Musk had acquired a large 9.2% stake inTwitter , according to regulatory filings earlier this month.- The Tesla co-founder had then come out with a bid to acquire Twitter for $54.20 per share, valuing the social media giant around $43 billion.
- After enacting a ‘poison pill’ policy – decidedly taking an anti-Elon
Musk stance – Twitter is now close to accepting Musk’s original offer.
According to a report by Reuters, Twitter is “nearing a deal” to sell itself to Musk, who had initially offered $54.20 per share, terming it as his “best and final” offer.
Post this, Twitter had officially announced a ‘poison pill’ policy to keep Musk from undertaking a hostile takeover. Last week, Musk readied a war chest of $46.5 billion – more than adequate to cover his bid for Twitter.
Reacting to the news, Twitter shares were up nearly 5% in pre-market trading.
Earlier this month, regulatory filings revealed that Elon Musk had acquired a 9.2% stake in Twitter, making him the single largest individual shareholder of the company. The revelation sent Twitter stock soaring, hitting a high of 28% when the news broke (April 4).
Post the revelation, Twitter invited Musk to join the company’s board of directors, but with the restriction that he would not be allowed to acquire more than a 14.9% stake.
After initially accepting the offer, Musk rejected the board seat.
In his open letter to the Twitter board, Musk also made a veiled threat to sell the company’s shares if his offer were not accepted. “My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder,” Musk said.
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