American Entrepreneur Elon Musk Has Become Closer to Buying Twitter
OREANDA-NEWS The American company Twitter has revised its attitude to the proposal of the richest man in the world, Elon Musk, to buy a social network. The Wall Street Journal, citing sources, indicated that the company has again begun considering a proposal to sell Twitter after Musk raised the proposed transaction amount to $46.5 billion. Now the entrepreneur owns 9.2% of the shares of the social network.
Sources of the newspaper said that the parties met on April 24 for new negotiations. Before that, American billionaire and inventor Elon Musk announced that he was ready to increase the transaction amount from $43 billion to $46.5 billion.
The Wall Street Journal wrote that «Twitter has taken a fresh look at the proposal and is more likely than before to seek negotiations». It is noted that Twitter may give an answer to Musk as early as April 28, when it reports earnings for the first quarter, and even earlier. At the same time, the founder of Tesla and SpaceX has already met with several shareholders of the company to explain the advantages of his offer.
It is also indicated that now the company that owns the social network is assessing the value of Twitter in order not to lose money on the deal with Musk. The publication clarified that the company may, as an additional condition, demand compensation from the billionaire if the deal does not take place.
Earlier, Twitter management rejected offers to sell 100% of the shares of the microblogging server. The company even decided not to let Musk buy out the company by using the «poisoned pill» method. It consists in the fact that existing shareholders receive special rights that allow them to purchase a certain number of shares of the company for free or at a big discount. As a result, the securities become less attractive to a potential buyer or an undesirable shareholder, since his share can be greatly eroded.
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