Elon Musk up to paying $15bn to take over Twitter
The Tesla CEO seeks to take a hold of the social media giant.
Tesla owner and billionaire Elon Musk is eyeing Twitter as its next business prospect. Musk looks to invest $15 billion to delist Twitter off the New York Stock Exchange and privatize it, with the aim to make social media "a model for free speech", according to the New York Post on Tuesday.
Musk bought a 9.1% stake in Twitter worth $3 billion two weeks ago, following that number up with an offer of $43 billion to purchase the remainder of the shares.
Read more: Elon Musk no longer Twitter's largest shareholder
According to the Post, despite Musk's wealth, the billionaire appears to face difficulty raising funds for the deal. It was said that Musk was planning to execute a tender offer in the next ten days, where Morgan Stanley, a Wall Street bank, could raise $10 billion in debt. Several private-equity firms have reportedly been interested in participating in a Twitter deal.
On Monday, Musk announced that he will not be taking a penny in terms of salary if he were to be appointed to become on the board of directors.
Someone with a heavy share in Twitter, Saudi prince Alwaleed Bin Talal, said that Musk's offer - $54.20 per share - in comparison with Tuesday's traded price, $46.50, is below value.
Furthermore, Twitter's board is against Musk's offer.
On Friday, Twitter announced that its board of directors has adopted a law - the 'Poison Pill' - that ensures the lessening of the likelihood that any person or entity would be able to take full control of the company without paying the premium.
However, that pill may not prevent other corporations or individuals from acquiring up to 15% of the company's shares. These shareholders might join forces with Musk to compel a sale, make changes in the management ranks, or push for other reforms to the company.
Musk considers bringing in partners on Twitter bid
On Saturday, sources close to Elon Musk reported that he is talking to investors about partnering with him on a bid for Twitter.
Sources stated a new proposal involving partners could be announced within days.
One possibility, according to the sources, is partnering with Silver Lake Partners, which was intending to co-invest with him in 2018 when he was considering taking Tesla private.
According to insiders, Silver Lake's Co-CEO Egon Durban is a Twitter board member and oversaw Musk's negotiation team during the failed attempt to take Tesla private in 2018. Silver Lake did not respond to requests for comment.