Twitter hit with pressure from shareholders over Elon Musk's big offer

Sources close to the deal have said that Twitter's board is facing pressure from shareholders to reconsider Elon Musk's deal.

@JakConnorTT

Published Apr 25, 2022 2:06 AM CDT
Updated May 17, 2022 5:01 AM CDT

1 minute & 51 seconds read time

Tesla and SpaceX CEO Elon Musk offered to purchase Twitter at $46.5 billion, and reports indicate that Twitter and Musk were scheduled to meet on Sunday to discuss the offer.

Twitter hit with pressure from shareholders over Elon Musk's big offer 01

Now, the Financial Times has reported that sources close to the deal have said that Twitter is facing pressure to seek a deal with Musk for the sale of Twitter, despite the second largest social media company taking a "poison pill" that would allow existing shareholders to purchase Twitter stock at a discount price, in an effort to dilute the holdings of any new investors and thwart Musk's attempt at securing a deal.

However, if many shareholders back Musk in a tender offer and accept his bid for the company, Twitter's negotiating power would take a hit as the board would be going against many of its shareholders. Even with its defensive "poison pill" and a portion of its shareholders backing it, Twitter may not hold enough negotiating power.

The Guardian has reported that Musk is currently "in takeover talks" with Twitter and that the Tesla CEO's "best and final bid" will remain at $54.20 a share, with funding already secured.