What you need to know
- Twitter’s board allegedly met on Sunday morning to discuss Elon Musk’s takeover bid.
- The board is said to be reconsidering Musk’s proposal several days after adopting a defensive measure to prevent him from acquiring more of Twitter’s stock.
- Musk recently disclosed that he had secured $46.5 billion in financing for his bid.
Twitter’s board is reportedly reconsidering Elon Musk’s proposal to buy the social media company, more than a week after adopting a “poison pill” measure to block his takeover bid.
According to The New York Times, the board of directors met on Sunday morning to discuss Musk’s offer to buy Twitter. The renewed interest comes several days after Musk announced that he had secured $46.5 billion in financing for his bid.Earlier this month, the founder of SpaceX and Tesla offered to buy all of Twitter’s common stock for $54.20 per share. Musk stated in his letter to Twitter that the social networking site has the potential to be “the platform for free speech around the globe.”
However, Twitter enacted a “shareholder rights plan” in response to Musk’s “unsolicited, non-binding” bid. This precluded him from acquiring an additional stake in the company. Musk previously bought a 9.2% stake in Twitter worth $2.89 billion, making him the company’s largest individual shareholder.
He warned that if the offer was declined, he would reconsider his position as a shareholder.
Citing sources privy to the discussion, the Times said Twitter’s board planned to meet with Musk’s party “to discuss other contours around a potential deal,” including “any fees that would be paid if an agreement was signed and then fell apart.”
Android Central reached out to Twitter for a statement, but it was not immediately available at the time of this writing.
While the latest development by no means indicates that a deal is underway, it marks a significant step in that direction.