Twitter Inc. is re-examining Elon Musk’s $43 billion takeover offer after the billionaire lined up financing for the bid, in a sign the social-media company could be more receptive to a deal.
had been expected to rebuff the offer, which Musk made earlier this month without saying how he would pay for it. But after he disclosed last week that he now has $46.5 billion in financing, Twitter is taking a fresh look at the offer and is more likely than before to seek to negotiate, people familiar with the matter said. The situation is fast-moving and it is still far from guaranteed Twitter will do so.
Twitter is still working on an all-important estimate of its own value, which would need to come in close to Musk’s offer, and it could also insist on sweeteners such as Musk agreeing to cover breakup protections should the deal fall apart, some of the people said.
The two sides are meeting Sunday to discuss Musk’s proposal, the people said.
Twitter is expected to weigh in on the bid when it reports first-quarter earnings Thursday, if not sooner, the people said. Twitter’s response won’t necessarily be black-and-white, and could leave the door open for inviting other bidders or negotiating with Musk on terms other than price. Musk reiterated to Twitter’s chairman Bret Taylor in recent days that he won’t budge from his offer of $54.20-a-share, the people said.
An expanded version of this report appears on WSJ.com.
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