Twitter ‘under pressure’ to strike Elon Musk deal – as two sides meet to discuss takeover plan | Economic news – News 24 | News in France and abroad

Twitter is facing mounting pressure from shareholders to seek a deal with Elon Musk.

The richest man in the world offered to buy the social network for $43bn (£33.5bn) – and accused the company of failing to respect free speech.

Twitter recently adopted a poison pill strategy to try to resist a hostile takeover, but some investors want the tech giant to seriously consider its offer.

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Elon Musk is the richest man in the world

According to Reuters, some shareholders want Twitter to seek a better deal with Musk, urging him not to pass up the opportunity.

Musk has previously described his $54.20 per share offer as “best and final” – but given the social network is set to report quarterly results on Thursday, Twitter’s board could argue that price is too much. low.

Beyond encouraging Tesla’s CEO to sweeten his offer, other options for the company are to lure bids from rivals.

A fund manager invested in Twitter told Reuters: “I wouldn’t be surprised to wake up next week and see Musk raise what he called his best and final offer to maybe $64.20 a share. .”

Musk argues that the social network must be private to grow and become a true platform for free speech.

The billionaire also wants to tackle other problems facing the social network, such as the proliferation of bots that distribute spam.

And he thought about adding new features, including an edit button, as well as reducing Twitter’s reliance on advertising and posting longer tweets.

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Some hedge funds think Musk’s offer is a bargain, but other investors warn Twitter is worth much more

Twitter’s stock was trading at $48.93 at Friday’s close on Wall Street, meaning Musk’s offer is a 10% premium to the current price.

Some hedge funds think this represents a bargain – and say worries about inflation and the economic downturn mean Twitter’s stock is unlikely to be worth more than $54.20 anytime soon.

But long-term shareholders say Twitter is worth much more — and just six months ago the stock was trading at $62.11.

In other developments, The Wall Street Journal reported that Twitter is reconsidering Musk’s offer – not least because the billionaire now has funding for a deal.

According to the outlet, the two sides met on Sunday to discuss the proposal – and the social network “is more likely than before to seek to negotiate”.

Musk also met privately with several Twitter shareholders to outline the potential benefits of his takeover.

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Twitter ‘under pressure’ to strike Elon Musk deal – as two sides meet to discuss takeover plan | Economic news – News 24 | News in France and abroad

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