Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Elon Musk 'not sure' his takeover bid for Twitter will be successful

Elon Musk 'not sure' his takeover bid for Twitter will be successful

Tesla boss Elon Musk has admitted he is "not sure" his takeover bid for social media firm Twitter will be successful.

He made the comments at a conference just hours after revealing that he had offered to buy the company for $54.20 a share, valuing the firm at $43bn.

Also on Thursday, Twitter's chief executive told employees that the company was evaluating the approach.

Parag Agrawal reportedly said at the staff meeting that the company was not being "held hostage" by the offer.

Speaking at the TED2022 conference in Vancouver, Mr Musk said: "I am not sure that I will actually be able to acquire it."

He added that he had a "Plan B" if his bid for Twitter was rejected, but gave no further details of what that could mean.

Mr Musk also said at the event that Twitter should be more open and transparent. "I think it's very important for there to be an inclusive arena for free speech," he said.

On Thursday, he revealed his offer to buy all the shares in Twitter that he does not already own.

In an official filing to US regulators, Mr Musk said he was the right person to "unlock" the company's "extraordinary potential" and that if his offer was not accepted, "I would need to reconsider my position as a shareholder."

He also said that if Twitter's board of directors chose to reject the offer, it would be "utterly indefensible not to put this offer to a shareholder vote".

Saudi Arabia's Prince Alwaleed bin Talal shunned the bid, tweeting: "I don't believe that the proposed offer by Elon Musk comes close to the intrinsic value of Twitter given its growth prospects."

The billionaire claimed that he has a stake in Twitter through his investment firm Kingdom Holding Company. However, Mr Musk immediately replied asking how many Twitter shares Prince Alwaleed's firm owns, adding: "What are the Kingdom's views on journalist freedom of speech?"


Twitter confirmed that it had received the bid, but said its board must still review the "unsolicited, non-binding" offer, which values its shares at well below the level of more than $70 that they reached last summer.

Mr Musk already owns more than 9% of the social media platform, but he is no longer its biggest shareholder.

Asset management firm Vanguard Group disclosed on 8 April that its funds now own a 10.3% stake, bumping him off the top spot.

Mr Musk is the world's richest man, according to Forbes magazine, mostly due to his shareholding in electric vehicle maker Tesla where he is chief executive.

He has not revealed any details on how his bid for Twitter will be financed. Mr Musk is being advised by US investment bank Morgan Stanley.

Bruce Daisley, Twitter's former vice president for Europe, Middle East and Africa, told the BBC's Today programme that Mr Musk appeared to be "toying with the company to some extent".

"The latest bid he's put in, as far as I can tell, doesn't seem to be regarded as a serious bid but it is proving to be very disruptive with the organisation I think."

He said that Twitter may benefit from being taken private and out of the hands of shareholders.

"To some extent the constant scrutiny of being a publicly listed company, following in the footsteps of the likes of Google and Facebook, is definitely a challenge for the organisation so private ownership might be the right solution.

"I'm not convinced Elon Musk's approach is going to win many fans though," he added.

Twitter's shares, which are listed in New York, initially rose on Thursday but ended down 1.6% at $45.08, below Mr Musk's offer.

The board of Twitter has enlisted the help of another Wall Street bank, Goldman Sachs, as it considers how to respond to the takeover approach.


Other than acknowledging the takeover bid, Twitter has publicly kept pretty quiet since Elon Musk revealed his attempt to buy the company.

But details have emerged of an "all hands" meeting, where questions were put to the company's chief executive, Parag Agrawal.

The details give nothing more than a suggestion of what Twitter's management thinks of the offer. Mr Agrawal reportedly said he could not talk about the details, but that the company was not being "held hostage".

I'm told the meeting was designed to give employees more information. But one Twitter worker told me they left the meeting more confused. "I didn't leave feeling any sense of clarity," they said.

The employee said that they were in the dark about what could happen next. "I would say I know about as much as the public on Twitter," they said.

Twitter's board not only has to weigh up the offer, but also assess the damage that Elon Musk could do if scorned. Apparently he has a Plan B if Twitter rejects his offer.

Twitter may be worth tens of billions of dollars, but it is nothing compared to Elon Musk, who is worth more than $200bn. And that kind of wealth makes him a dangerous foe.


Watch: Ex-Twitter exec Vivian Schiller questions seriousness of Musk offer


AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
Budapest Central European Fashion Week Kicks Off
U.S. Celebrates Labor Day
Hungarian National Team Captain Scores Epic Goal
EU is getting aggressive: Four AfD Candidates Die Unexpectedly Ahead of North Rhine-Westphalia Local Elections
Japanese Customer Sways from VW to BYD after “Unbelievable” Test Drive amid Dealership Expansion
Nestlé Removes CEO Laurent Freixe Following Undisclosed Relationship with Subordinate
Pickles are the latest craze among Generation Z in the United States.
Giuliani Seriously Injured in Accident – Trump to Award Him the Presidential Medal of Freedom
Deadline Day Delivers Record £125m Isak Move and Donnarumma to City
Nvidia Reveals: Two Mystery Customers Account for About 40% of Revenue
Woody Allen: "I Would Be Happy to Direct Trump Again in a Film"
Lula and Putin Hold Strategic BRICS Discussions Ahead of Trump–Putin Summit
White House Eyes Budapest for Peace Talks
Cave Diving Beneath the Streets of Budapest
Another American Restaurant Chain Opens in Budapest
Hungarian Opposition Politician Supports Ukrainian Commander
Opposition Leader Threatens Media Outlets
American Airlines Adds New Flights to Budapest
F1 Hungarian Grand Prix Wraps Up
WhatsApp is rolling out a feature that looks a lot like Telegram.
U.S. Trade Representative says Washington still negotiating trade deals after court rules tariffs illegal
Von der Leyen says Europe drawing up 'precise' plans to send troops to Ukraine
Kremlin accuses Europe of hindering Trump’s peace efforts in Ukraine
×