Elon Musk Has Secured $46.5 Billion to Offer Twitter
EMusk claims he’s able to raise enough money to continue his plan to purchase Twitter. He confirmed in a Thursday morning SEC filing that he had secured $46.5 billion of funding through commitment letters from Morgan Stanley, and other financial institutions. Musk also floated that he may explore a “tender offer” to buy the social network in an effort to circumvent Twitter’s poison pill defense to his first offer.
A tender offer would appeal directly to a company’s shareholders, rather than its board. Musk could offer $54.20 per Twitter share to each shareholder if he decides to pursue Plan B. He would then be granted a majority of ownership if enough shareholders sell to him. Tender offers can be associated with a hostile takeover, because they bypass the company’s leadership and appeal directly to shareholders.
This can be an even more expensive purchase for the buyer. Musk might have to pay more for a majority of the shares if another bidder offers shareholders an appealing price. Apollo Global Management (which owns Yahoo) has already expressed an interest in purchasing Twitter.
Musk’s tender offer plan won’t be a surprise to his 82 million Twitter followers. Earlier this week, he tweeted the not-so-veiled message: “—– is the night”, a reference to F. Scott Fitzgerald’s “Tender is the Night.”
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