Twitter is facing growing pressure from shareholders to seek a deal with Elon Musk.
The richest man in the world offered to buy the social network for 43 billion dollars (33.5 billion British pounds) and accused the company of not supporting freedom of speech.
Twitter recently adopted a strategy for a “poison pill” in an attempt to counter hostile takeovers, but some investors want the technology giant to seriously consider its proposal.
Image: Elon Musk is the richest man in the world
According to Reuters, some shareholders want Twitter to look for a better deal than Musk, urging him not to allow this opportunity to slip away.
Musk had previously described his $ 54.20 share offer as “the best and final” – but given that the social network is set to post quarterly results on Thursday, the Twitter board may claim that price is too low.
In addition to encouraging Tesla’s CEO to sweeten his offer, other opportunities for the company include attracting bids from competitors.
A fund manager who invested in Twitter told Reuters: “I will not be surprised to wake up next week and see Musk raise what he called his best and latest offer to a possible $ 64.20 per share.” .
Musk argues that the social network must be private in order to grow and become a true platform for free speech.
The billionaire wants to deal with other problems facing the social network, such as the spread of bots that spread spam.
And he is considering adding new features, including an edit button, as well as reducing Twitter’s reliance on advertising and allowing longer tweets to be published.
Image: Some hedge funds think Musk’s offer is a good deal, but other investors warn that Twitter costs a lot more
Shares of Twitter were trading at $ 48.93 at the close on Friday’s Wall Street, meaning Musk’s offer was a 10% premium over the current price.
Some hedge funds think it’s a good deal – and say fears of inflation and economic slowdown mean Twitter shares are unlikely to be worth more than $ 54.20 any time soon.
But long-term shareholders say Twitter is worth a lot more – and just six months ago, the stock was trading at $ 62.11.
In other events, the Wall Street Journal reported that Twitter is reviewing Musk’s proposal – not least because the billionaire already has funding for the deal.
According to the publication, the two sides met on Sunday to discuss the proposal – and the social network “is more likely than before to seek negotiations”.
Musk also met in private with several shareholders on Twitter to highlight the potential benefits of the takeover.
Add Comment