Elon Musk is on the brink of closing a deal with Twitter. Twitter may be moving closer to a deal with Elon Musk. To recap, Musk offered to buy Twitter for $46.5 billion. The bid was put at the forefront of the Twitter board’s focus, after Elon Musk backed his unsolicited bid with cash. Early Sunday, the Twitter board met to discuss the high stakes bid. The bid and conditions were also discussed with Elon Musk’s team.

Elon Musk’s Bid


On April 14th, Mr. Elon Musk made it public that he wanted to buy out the social media company Twitter and make the company private. Instantly, many people had doubts about the deal, including Wall Street. The doubts were stemmed from the large price tag on the bid, and Elon Musk being able to pay for the deal. This doubt was quickly eliminated when he announced his financing strategy of:

  • $21 billion in equity financing
  • $13 billion in debt financing
  • $12.5 billion in loans against Tesla stock

After Musk presenting the above financing plans, Twitter immediately became intrigued. The deal went from being a distant possibility, to becoming an attainable goal. Although no official plans have been made, it appears that Elon Musk is headed in the right direction to acquire Twitter.

The Future of Twitter

One of the plans Musk has for Twitter is to transform the company and its policies. If the original bid is not welcomed or accepted by Twitter, Elon Musk is prepared to take the bid to Twitter’s shareholders. This type of move is called a “tender offer.” This type of business deal is when someone goes around a company’s board and solicit shareholders to sell their shares directly to the person.

Jack Dorsey is the co-founder of Twitter. He is also a board member. Lately, on the public platform both Dorsey and Musk have exchanged friendly tweets. Although Mr. Dorsey is important Twitter, in November he resigned as Twitter’s CEO. Also, Jack Dorsey is slated to leave the Twitter board as well.

Next Steps

Elon Musk’s original bid was worth more than $43 Billion to buy Twitter and make it a private company. Twitter responded to Musk’s offer by implementing mechanisms to make shares above a specific threshold to cost more money. The bid went further when Elon Musk secured $46.5 Billion in funding. The next steps are for Twitter to deliberate on the bid and either accept, decline, or counter Musk’s offer. Elon Musk has also presented the notion of bypassing the Twitter board and going directly to shareholders himself. This story will continue to unfold in the upcoming weeks.

Original source: https://www.nytimes.com/2022/04/24/technology/twitter-board-elon-musk.html