Twitter shares rose to $ 51.25 in early news trading.
Twitter had appeared to reject Tesla’s CEO’s unsolicited offer of $ 54.20 per share for the social media platform. Musk then outlined his financing, saying he secured $ 46.5 billion through bank loans and his own equity. These details seemed to give his bid more credibility.
Musk had also met privately with several major Twitter shareholders in recent days, with some expressing their support for his bid, according to a person who was briefed on the discussions and who was not authorized to speak about them.
If the deal goes through, it will put Twitter in the hands of the world’s richest man and one of its most popular users with more than 83 million followers.
Musk is worth about $ 259 billion, according to the Bloomberg Billionaire’s Index, but much of his wealth is tied up in stocks. The entrepreneur acts as CEO of the electric car company Tesla, the space company SpaceX and co-founder of the payment service PayPal.
What’s going on with Elon Musk and Twitter?
Musk took a stake of more than 9 percent in Twitter earlier this year, leading to two wild weeks of back and forth with the company. The company announced that he would join the board, and said days later that he had resigned.
Musk launched its takeover bid shortly after. He has said he wants to promote free speech on Twitter and plans to take the company private.
Elon Musk is worth $ 270 billion. He wanted to buy Twitter with an IOU.
Twitter adopted a so-called “poison pill” strategy to throw a roadblock in front of Musk’s offer, as it is basically designed to make it more expensive and complicated for him to buy the business. But Musk’s funding plan and the board’s willingness to entertain “constructive conversation” make a deal more likely, according to Angelo Zino, an analyst at CFRA Research.
“It looks like Elon has the board backed up in a corner,” Zino said Monday in comments sent to The Post.
Some Tesla investors have objected to Musk’s bid because they say it distracts from his responsibilities as CEO and could slow the momentum of one of the world’s most valuable automakers. And internally, Twitter employees have expressed concern about Musk’s potential impact on culture.
Musk is very active on the platform and has tweeted more than 17,300 times. He has an average of 125,180 likes per tweet, according to Socialtracker. Musk has been praised for his far-reaching approach to the site: he freely switches between raw memes of his rivals, opinion polls on the state of free speech, and critical business decisions.
His tweets have gotten him into trouble with the Securities and Exchange Commission: In 2018, he wrote that he had “secured financing” to take Tesla privately to $ 420 per share. Musk later clarified that the tweet had been a joke.
He said he chose the number $ 420 “because he had recently learned about the importance of the number in the marijuana culture and thought his girlfriend would find it funny, which is certainly not a good reason to choose a price,” according to the federal complaint. .
Musk has spent weeks tweeting about the need for “free speech” on the platform, and has taken an issue of permanent bans and urged Twitter to publish its algorithm.