This week Tesla CEO Elon Musk again took to Twitter to post a rather cryptic message. He tweeted a series of dashes, which appeared as though it were for a missing word. The dashes, in turn, were followed by “is the Night.” in the Tweet from April 20. Moreover, this tweet from Musk comes just days post his offer to buy Twitter for $43 billion.
Musk’s offer to buy the social media company came across as a hostile bid from the billionaire CEO. This led to Twitter Inc adopting a”poison pill” to guard itself. The poison pill, also known as the shareholders rights plan mainly entails enabling shareholders buying more stake to dilute the share of the hostile bidder who holds a relatively larger share. Currently, the billionaire CEO owns about 9.2% stake of Twitter Inc.
The Tesla CEO reportedly gained more headlines for his posts on Twitter this week. On Monday, April 18, Mush tweeted the Elvis Presley song, “Love Me Tender” following the social media company’s adoption of the strategy. Twitter went for the plan to sell shares at a lesser price to stop any attempts from shareholders to amass a stake of over 15%.
Musk’s tweet on the platform from April 20:
_______ is the Night
— Elon Musk (@elonmusk) April 20, 2022
On Tuesday, April 19, a report the New York Post stated that Musk was ready to invest from $10 billion to $15 billion from his own pocket. Two sources familiar with the situation stated that Musk was willing to invest this to take Twitter private. Currently, he is the second largest shareholder of the social media company.
Reportedly, Musk is planning to go ahead with a tender offer in the next ten days approximately. Moreover, he has turned to Morgan Stanley to raise an additional $10 million in debt. Additionally, the billionaire may also be ready to borrow against his present stake if need be. Reports specify that this step could possibly raise much more money with time.
Following the adoption of the ‘poison pill’ strategy, more private equity firms showed interests in taking part in a deal with Twitter. The interest was kicked off when Thoma Bravo, a technology-focused private equity firm contacted Twitter. They contacted the social media giant last week to look into a possible buyout challenging Musk’s acquisition bid.
Moreover, Apollo Global Management Inc is reportedly looking into ways it can provide financing to a deal, being open to working with other bidders, including Musk. Clearly, various analysts and investment bankers are expecting a refusal from Twitter’s board to Musk’s offer soon.