Sunday, September 24

Twitter negotiating its sale to Elon Musk


Elon Musk. / Eph

The eleven members of the Twitter council would have met until the early hours of this Monday to discuss his unsolicited offer with Musk, according to the US press.

EP

The board of directors of Twitter is negotiating the details of the sale of the company that owns the homonymous social network to Elon Musk, the richest man on the planet, who in mid-April proposed to buy the company for 43,394 million dollars (39,803 million euros), according to ‘The Wall Street Journal’ and ‘The New York Times’.

According to this latest newspaper, the eleven members of Twitter’s council would have met until early Monday morning to discuss his unsolicited offer with Musk, sources familiar with the situation reported on condition of anonymity, adding that the parties were discussing the details of the transaction, including a timeline and the fees that would be paid if an agreement was signed and ultimately not completed.

On its side, ‘The Wall Street Journal’ reveals that the Twitter board, initially reluctant to the operation, opened the doors to a negotiation with Musk this Sunday, after the tycoon reported last week that he has guarantees worth of 46,500 million dollars (42,919 million euros) to finance the launch of a possible takeover bid (OPA) on Twitter.

Likewise, the reference newspaper for Wall Street points out that the change in the position of the Twitter board occurs after Musk had met privately last Friday with several shareholders of the company to present the advantages of his proposal, in addition to commit to addressing freedom of expression issues that you feel affect the platform.

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In any case, both newspapers warn that no agreement has yet been reached and the parties could not finally reach an agreement.

On April 14, Elon Musk, who in addition to being the richest man in the world is one of the most active and influential users of Twitter, of which he owns 9.1% of the shareholding, announced his willingness to launch a takeover bid that valued the company at 43,394 million dollars, setting a unit price of 54.20 dollars for each Twitter share and with the intention of delisting the company.

Last week, after rejecting Twitter’s offer to join the company’s board in exchange for not increasing his stake in the company, Musk informed the United States Securities Market Commission (SEC) that he has guarantees worth of 46,500 million dollars (42,919 million euros) to finance a possible acquisition of Twitter.

In this way, to finance the proposed transaction to the address of Twitter or a potential OPA, Musk informed the SEC of a series of agreements with entities, including the commitment of Morgan Stanley and other firms to provide financing amounting to 25,500 million dollars (23,536 million euros).

Specifically, the participating entities have agreed to provide 12,500 million dollars (11,537 million euros) through margin loans available to Musk.

Likewise, they will provide another 13,000 million dollars (11,999 million euros) through a senior secured term credit line amounting to 6,500 million dollars (5,999 million euros), a 500 million dollar secured revolving senior credit line ( 461 million euros), a senior secured bridge credit facility for an aggregate amount of up to 3,000 million dollars (2,769 million euros) and a senior unsecured bridge credit line of another 3,000 million dollars.

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On his side, Elon Musk himself has submitted a letter to the SEC in which he agrees to contribute approximately 21,000 million dollars (19,383 million euros) to cover all amounts payable in relation to the transaction plus related charges and expenses. .


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