Tuesday, 20 May 2025
America Age
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Font ResizerAa
America AgeAmerica Age
Search
  • Trending
  • World
  • Politics
  • Opinion
  • Business
    • Economy
    • Real Estate
    • Money
    • Crypto & NFTs
  • Tech
  • Lifestyle
    • Lifestyle
    • Food
    • Travel
    • Fashion / Beauty
    • Art & Books
    • Culture
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 America Age. All Rights Reserved.
America Age > Blog > Tech / Science > Now That Elon Musk Has Offered to Buy Twitter, What Happens Next?
Tech / Science

Now That Elon Musk Has Offered to Buy Twitter, What Happens Next?

Enspirers | Editorial Board
Share
Now That Elon Musk Has Offered to Buy Twitter, What Happens Next?
SHARE

Elon Musk has offered to buy Twitter at a valuation of about $43 billion. Here is what will — or could — happen next:

The board reviews the offer. The board will work with its advisers at Goldman Sachs to review Mr. Musk’s offer. They will have to consider, among other things, whether the deal fairly values the company, and whether Mr. Musk has the financing to cobble together a deal.

The board cannot simply decide it does not like Mr. Musk as a suitor, but they can “come up with reasons why they don’t like the bid,” like, for example, his ability to fund it, said Steven Davidoff Solomon, a professor at the School of Law at the University of California, Berkeley.

The board announces its decision. The board will likely take up to a few days to review the offer. If it rejects the offer, it can go in one of several ways: It can put in a defense mechanism known as a poison pill that limits the ability of Mr. Musk, and every other shareholder, to buy up Twitter shares in the open market.

Once it does that, it could still decide to sell itself, but without the pressure of Mr. Musk — or any other suitor — threatening to acquire it by buying a significant number of shares in the open market.

There are reasons Twitter may opt not to do a poison pill. It might be wary of potential criticism that a poison pill is deflecting the concerns of a highly vocal member of its community.

Likewise, Mr. Musk, whose last reported stake in Twitter was a little over 9 percent, has incentive to keep his proportion of Twitter shares below 10 percent. Once he hits that threshold, he is limited in how quickly he can sell out of the company.

Assuming Twitter rejects the offer, Mr. Musk could raise his offer — despite having already said it was best and final. He could also take the bid directly to other shareholders, through what is known as a tender offer, in which he would buy shares from other shareholders.

Still, at least one shareholder has already said the bid undervalues the company.

The board potentially looks for a white knight. “Twitter has essentially been for sale since they went public,” said Howard Berkenblit, who leads the Capital Markets group at law firm Sullivan & Worcester.

Mr. Musk’s latest activity most likely heightened interest in and Twitter’s amenability to a deal. Some private equity firms may be put off by Twitter’s limited cash flow, but a number of technology companies may take a look, given heightened interest in the social media giant’s power and reach.

There could be big suitors. Recall that Microsoft, which owns LinkedIn, and Oracle both vied for a deal with video sharing company TikTok. Still, potential antitrust considerations would likely be a significant deterrent, given the Biden administration’s scrutiny of big technology deals.

TAGGED:Mergers, Acquisitions and DivestituresMusk, ElonSocial MediaThe Washington MailTwitter
Share This Article
Twitter Email Copy Link Print
Previous Article The Hill’s Morning Report – Russia plots next move amid setbacks The Hill’s Morning Report – Russia plots next move amid setbacks
Next Article UK says Rwanda flights to start in weeks; critics slam plan UK says Rwanda flights to start in weeks; critics slam plan

Your Trusted Source for Accurate and Timely Updates!

Our commitment to accuracy, impartiality, and delivering breaking news as it happens has earned us the trust of a vast audience. Stay ahead with real-time updates on the latest events, trends.
FacebookLike
TwitterFollow
InstagramFollow
LinkedInFollow
MediumFollow
QuoraFollow
- Advertisement -
Ad image

Popular Posts

Trump Organization tax case wraps up with closing arguments

NEW YORK (AP) — Donald Trump’s company “cultivated a culture of fraud and deception” by…

By Enspirers | Editorial Board

Former U.S. ambassador to Ukraine visits Santa Fe to discuss book, current events

May 15—Marie "Masha" Yovanovitch describes feeling complex emotions about Ukraine, the country where she spent…

By Enspirers | Editorial Board

The right way to break down the professionals and cons of shopping for down charges

At Inman Join Las Vegas, July 30-Aug. 1, 2024, the noise and misinformation shall be…

By Enspirers | Editorial Board

Myanmar court convicts Suu Kyi on more corruption charges

BANGKOK (AP) — A court in military-ruled Myanmar convicted the country’s ousted leader, Aung San…

By Enspirers | Editorial Board

You Might Also Like

Former Meta govt turned app founder Shauna Sweeney on the facility of mothers
Tech / Science

Former Meta govt turned app founder Shauna Sweeney on the facility of mothers

By Enspirers | Editorial Board
Introducing Movement, Google’s new AI video device and Sora competitor
Tech / Science

Introducing Movement, Google’s new AI video device and Sora competitor

By Enspirers | Editorial Board
This is all the things AI coming to Google Gmail
Tech / Science

This is all the things AI coming to Google Gmail

By Enspirers | Editorial Board
Ruggable and Tumble are operating dueling Memorial Day gross sales on washable rugs
Tech / Science

Ruggable and Tumble are operating dueling Memorial Day gross sales on washable rugs

By Enspirers | Editorial Board
America Age
Facebook Twitter Youtube

About US


America Age: Your instant connection to breaking stories and live updates. Stay informed with our real-time coverage across politics, tech, entertainment, and more. Your reliable source for 24/7 news.

Company
  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement
Contact Us
  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability
Terms of Use
  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices
© 2024 America Age. All Rights Reserved.
Welcome Back!

Sign in to your account

Lost your password?