Twitter’s board of directors has not responded to Elon Musk’s purchase proposal for the company, so now he’s proceeding with his ‘plan B’ to purchase the company.
Via CNBC:
Elon Musk is exploring whether to commence a tender offer for Twitter, according to a new securities filing.
In an updated filing published on Thursday, Musk said that given the lack of response from Twitter’s board, he is now exploring a tender offer to purchase some or all shares of the company directly from its shareholders.
The filing says Musk has received commitments for $46.5 billion to help finance the potential deal. Musk has secured about $25.5 in debt financing through Morgan Stanley Senior funding and other firms, and Musk said he has committed about $21 billion in equity financing. The other participating firms include Bank of America, Barclays, MUFG, Societe Generale, Mizuho Bank and BNP Paribas.
Musk has not yet determined he will make a tender offer for Twitter or whether he will take other steps to further the proposal, the filing states.
Representatives from Twitter didn’t immediately respond to a request for comment.
I won’t claim to understand how all of this works because, honestly, I hated finance class in college.
I just hope he’s able to purchase enough shares from the shareholders in order to make this takeover happen or to gain enough that gives him a solid negotiating position with the board.
Musk says he doesn’t like to lose and I think much of the country is pulling for him to win.
Yesterday Musk teased this news with a cryptic tweet:
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022