Tesla founder and African American billionaire Elon Musk is reportedly planning his hostile takeover of Twitter with the goal of formally launching the bid to acquire the company and take it private in 10 days.
Media reports indicate that Musk is orchestrating a “complex” plan wherein he will accomplish his goals of buying Twitter and taking it private, and the billionaire is reportedly relying primarily on other people’s money to make the historic deal happen.
Musk plans to invest between $10 and $15 billion of his own liquid capital, along with $10 billion raised by Morgan Stanley, and $20 billion from “co-investors who will finance a hostile tender offer directly to Twitter shareholders,” reported the New York Post, quoting sources familiar with Musk’s plans.
He made the offer to buy Twitter for $54.20 per share, about $43 billion, last week. Twitter’s board swallowed a poison pill to buy the board more time and potentially dissuade Musk’s allies from going along with his plan, and the Saudi Arabian royal who owns a significant stake of Twitter claims Musk is not offering enough money.
The Post claims some investors are “skittish” about Musk’s alleged history of “unpredictable behavior and taste for controversy,” suggesting the electric vehicle and space pioneer may have difficulty raising the additional $20 billion.
Musk’s plan apparently does not result in him being a majority owner of Twitter, but does leave him with the largest share of the company.
He previously hinted at the hostile tender offer in a cryptic Tweet, in which he simply wrote “love me tender.”
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022
Still, the Post also notes that Musk could reportedly tap further into his own cash reserves, or borrow against his existing Twitter stock, or raise debt against his Tesla stock, potentially availing himself to tens of billions more in liquid capital.
According to the Post, “Musk is planning to launch the tender offer for Twitter in 10 days or so.”
That would place the date Musk’s plan will reportedly launch as Friday, April 29.
Musk describes himself as a free speech absolutist, and many have questioned whether he would allow banned individuals – like 45th President Donald Trump – to return to the platform should the takeover succeed.
Many on the left, meanwhile, insist that Musk’s pro-free speech stance poses a danger to democracy.
