Musk considers bringing in partners on Twitter bid
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Elon Musk looks into a new proposal that involves new investors over a bid for Twitter.
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Musk considers bringing in partners on Twitter bid.
Sources close to Elon Musk have 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.
It's unclear if Musk would propose Twitter with a totally new offer — maybe upping his current proposal — or whether other partners would simply join him in the purchase. A representative for Musk declined to comment.
Twitter, for its part, adopted a so-called poison pill on Friday, a business maneuver that precludes Musk from acquiring more than 15% of the firm.
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.
Twitter hasn't officially submitted its shareholder rights plan with the SEC, but the poison pill was mentioned in a statement. More information will be provided in the SEC filing, including whether it prohibits like-minded investors from banding together to purchase more than a 15% interest.
“This is not over,” a source close to the situation said.
Musk has stated that he currently owns 9.1 percent of Twitter. He made an offer to buy Twitter for $54.20 per share on Thursday. Shares recently traded at $45.08 per share, indicating doubt about his current take-it-or-leave-it proposal.
Saudi Arabian investor Prince Alwaleed bin Talal said on Thursday that, as one of the major shareholders in Twitter, he rejected the proposed takeover bid.
Meanwhile, Twitter may have other options.
Musk says ready to buy 100% of Twitter
After acquiring a 9.2% stake in Twitter not too long ago, the world's richest man declared he is now willing to buy all of Twitter's shares.
Elon Musk announced on Thursday that he is willing to buy all of Twitter's shares for $54.2 each, according to a filing with the Securities and Exchange Commission (SEC).
"I am offering to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I began investing in Twitter and a 38% premium over the day before my investment was publicly announced," Musk said in a letter accompanying the filing.
Twitter's shares jumped 13% on the news.
Elon Musk is no longer Twitter's largest shareholder
Although Elon Musk announced he is willing to buy all of Twitter's shares, he is no longer the company's top shareholder.
Vanguard Group funds recently increased their investment in the social media network, making the asset management Twitter's largest stakeholder and knocking Musk out of first place.
According to the most current publicly accessible filings with the US Securities and Exchange Commission, Vanguard now owns 82.4 million shares of Twitter, or 10.3% of the firm, as of April 8.
Based on Twitter stock's closing price on Wednesday, Vanguard's shares are now placed at $3.78 billion, after it increased its stake during the first quarter.
