According to the New York Times, Elon Musk plans to confront Twitter (TWTR. N) Initiation of an offer to takeover. According to people familiar with the matter, Musk himself will invest $10 billion to $15 billion in the acquisition of his own cash bid, other acquisition partners and companies will contribute about $20 billion, and the rest of the funds are still being raised.
According to people familiar with the matter, Morgan Stanley, a partner in the acquisition plan, is recently raising funds for the acquisition, and Musk is currently only considering debt financing with tesla shares he holds as collateral, not considering equity financing, which will be completed as soon as this week, which may raise billions of dollars more.
"Co-investors will have more equity than Musk, but Musk will be the largest single holder," the source said. Still, it was mainly external financing to support Musk's bid, and Musk has used Morgan Stanley to raise another $10 billion in debt to Twitter in the traditional leveraged buyout.
The $43 billion acquisition proposal, apparently, even the world's richest man, $270 billion Elon Musk can not eat alone. Previously, it was reported that Musk was looking for (multiple) potential investors to cooperate in the acquisition of Twitter.
One possibility is that Musk will partner with Silver Lake. Apollo Global Management Inc., one of the world's largest acquisition companies, is also considering bidding. The company has discussed a possible deal to support Twitter and could offer equity or debt to other bidders such as Musk or private equity firm Thomas Bravo LP to back up the offer.
According to market news, Blackstone, Vista, and Brookfield have ruled out the possibility of financing Musk's acquisition of Twitter.
According to previous reports, on April 14, according to information on a regulatory document, Tesla CEO Elon Musk proposed to buy 100% of Twitter's shares for $54.20 per share in cash and take it private. As soon as the news came out, Twitter's stock price soared, rising 15% at one point before the market.
Musk said in the article: "I invested in Twitter because I believe it has the potential to become a platform for free speech around the world, and I believe that freedom of speech is a social responsibility for a functioning democracy." However, since making the investment, I now realize that the company is neither going to flourish nor serve this social need in its current form. Twitter needed to transform into a private company. As a result, I offered to buy 100% of Twitter for $54.20 per share in cash, a 54% premium over the day before I started investing in Twitter and a 38% premium the day before I publicly announced my investment. My offer is the best and ultimate offer and if it is not accepted, I need to reconsider my position as a shareholder. He also said Twitter has extraordinary potential, and he will unleash that potential.
As can be seen from the U.S. Securities and Exchange Commission (SEC) filings, as of April 13, 2022, the day before Musk proposed to buy Twitter, Musk held a total of 73,115,03 Shares of Twitter stock, accounting for 9.1%. Twitter responded by acknowledging receipt of a non-binding takeover proposal from Elon Musk and that the board will carefully review the proposal.
Musk also said his plans for Twitter include making twitter source code open source to be subject to public scrutiny. "The code should be on GitHub so it can be checked." He said. "I just think it's important for the function of democracy in the United States and other countries." If we can increase trust in Twitter as a public platform, the risk of civilization will be reduced. In addition, Musk also said, "I think it is important to be an inclusive arena for free speech." Twitter has become a de facto town square, and it's important that people have both realities and realities and opinions that they can speak freely within the confines of the law. ”
As soon as the news of the acquisition came out, it stirred up thousands of waves, and all parties reacted differently to it.
Dogecoin co-founder Jackson Palmer believes Musk's offer to Twitter is a hostile takeover. "Linking any kind of 'freedom' to hostile acquisitions by the world's richest people and forcing one of the largest public social media platforms to take private requires quite deep psychological exercises," he tweeted. ”
The Wall Street Journal reported that Twitter's board, which excludes Jack Dorsey, owns only 0.12 percent of the shares, but they are not only rejecting Musk's acquisition, but are considering a measure to help the company fend off hostile acquisitions. One of the options the board considered was a "poison pill" plan — a shareholder equity plan, according to sources. The poison pill strategy allows existing shareholders to buy more shares at a discounted price, which is tantamount to diluting the ownership interests of the "enemy".
Ethereum founder V Shen tweeted that compared with the current situation of Twitter, there is no opposition to Musk's acquisition and operation of Twitter, but it is against the "hostile acquisition" of social media companies by rich people or rich organizations, and if Musk's behavior encourages this practice, it will be "very" wrong.
Saudi Prince Al Waleed bin Talal Al Saud, a majority shareholder who holds a 5.2 percent stake in Twitter, tweeted that Musk's $54.2 purchase price offer did not reach Twitter's intrinsic true value and that "as one of Twitter's largest long-term shareholders, I and my investment firm, Kingdom Holding Company (KHC), will reject the offer."
Sun Yuchen also followed the hot spot, tweeting that offering a price of $60 per share will privatize Twitter, but fully supports Musk's reform initiatives, hoping that Twitter will become crypto native and Web3 friendly. In addition, Sun Yuchen also expressed a desire to move Twitter overseas and decentralize its staff, thus making it more neutral and less U.S.-centric. Hope to turn Twitter into a more open and decentralized Web3 framework.
Musk revealed after being met with huge opposition that he also has a Plan B if Twitter does not accept his offer. This Plan B statement has caused widespread speculation and discussion, whether Musk plans to start a new platform to officially enter the social media industry? After all, as a big V with more than 80 million followers on Twitter, no one will stir up the public opinion field and set off a storm more than Musk.
Cardano founder Charles Hoskinson tweeted that Ait Musk invited him to work together to build a new decentralized social media platform.
No matter who the dust settles in the end, Twitter spends on whom. There is no doubt that Musk has once again proved his ability to stir up the entire capital market with one sentence. Whether Musk can eventually successfully acquire Twitter, the future direction of Twitter will be rewritten by Musk, and there is no doubt about it.
The last person to be able to use Twitter to exert such a wide range of influence was former U.S. President Donald Trump, known as "Twitter Rule." On January 8, 2021, his personal Twitter account was permanently banned.
Author: even
Reviewer: XL
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