Twitter and Elon Musk would already be close to the agreement
After weeks of positions that seemed quite opposed, and by surprise for many of us who have been following the process, it seems that the board of directors of Twitter and Elon Musk would be quite close to reaching an agreement. Anyone would say that just a few days ago the executives of the social network chose to shield themselves from the takeover bid with the much-mentioned poison pill, and that Musk dedicated himself to threatening them with reducing their salaries to zero dollars if he took control.
And it is that, as we can read in Yahoo! Finance, The board met yesterday, Sunday, to analyze Elon Musk’s proposal in detail. and, after having contacted him, they have stated that the agreement could be very close. According to several related sources, the review of the economic terms presented by the billionaire before the SEC to demonstrate his ability to pay for the purchase would have been the element that has made them change their minds.
And this is a bit surprising, really, because the activation of the poison pill it implied that they already took for granted that the operation, economically, was feasible. Perhaps the difference has been given by the fact that the total capital that Musk can dispose of, as evidenced by the documentation he has presented, is well above the figure initially raised, that is, when the proposal was first raised. Twitter buy option. According to some analysts, Musk underestimated the value of Twitter with his first launch.
Thus, with the Twitter board satisfied with the economic terms of the offer, it seems that the main stumbling block would already be solved. However, as we could imagine and confirmed by these sourcesthere is still a part of the negotiation pendingin which they will have to define everything from the deadlines for the various phases of the purchase operation to the guarantees that will protect both parties if the other is unable or unwilling to complete the acquisition process.
Nothing is certain at this point, we already know that even in its final phase, an acquisition process can derail and end in nothing. However, the fact that the Twitter board of directors sees the agreement so close, added to the interest shown by Musk to take control of the social network, they seem pretty clear signs that, soon, they will finish putting the points on the i’sthe champagne bottles will be uncorked and Musk will become a little less billionaire but, in return, he will become the owner of Twitter.
