Elon Musk has acquired commitment letters worth around $46.5 billion to purchase all outstanding shares of Twitter and take control.
Following a lack of reaction from Twitter, Tesla CEO Elon Musk is “exploring” this tender offer.
Twitter has not officially responded to Musk’s bid, which was previously valued at $43 billion.
However, the company has just authorized a temporary “poison pill” measure designed to dissuade aggressive takeovers.
The strategy would allow certain shareholders to purchase additional shares if someone purchased more than 15 percent of outstanding stock without the board of directors’ consent, which would reduce the value of Musk’s position.
Musk’s 9.2 percent stake means he is already the largest individual shareholder.
Musk claims he made the bid to protect free expression, and stated that he could unlock Twitter’s potential with features such as an edit button and an open source algorithm.
Twitter has stated it is already working on these features.
However, it comes at a time when the executive is battling the SEC for alleged financial rule breaches, many of which are related to his tweets.
The entrepreneur has several compelling reasons to buy Twitter, and his financial support demonstrates his seriousness.
Source: Yahoo! Finance