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
Intel Reports Revenue Beats but Sees 81% Rise in Losses
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
President Trump Diagnosed with Chronic Venous Insufficiency After Leg Swelling
CEO Resigns Amid Controversy Over Relationship with HR Executive
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
Tulsi Gabbard Unveils Evidence Alleging Political Manipulation of Intelligence During Trump Administration
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Trump Announces Coca-Cola to Shift to Cane Sugar in U.S. Production
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
Zelensky Reshuffles Cabinet to Win Support at Home and in Washington
"Can You Hit Moscow?" Trump Asked Zelensky To Make Putin "Feel The Pain"
Church of England Removes 1991 Sexuality Guidelines from Clergy Selection
Superman Franchise Achieves Success with Latest Release
Hungary's Viktor Orban Rejects Agreements on Illegal Migration
Air India Pilot’s Mental Health Records Under Scrutiny
Jamie Dimon Warns Europe Is Losing Global Competitiveness and Flags Market Complacency
Moonshot AI Unveils Kimi K2: A New Open-Source AI Model
Martha Wells Says Humanity Still Far from True Artificial Intelligence
Nvidia Becomes World’s First Four‑Trillion‑Dollar Company Amid AI Boom
EU Delays Retaliatory Tariffs Amid New U.S. Threats on Imports
Trump Proposes Supplying Arms to Ukraine Through NATO Allies
US Opens First Rare Earth Mine in Over 70 Years in Wyoming
Bitcoin Reaches New Milestone of $116,000
Severe Heatwave Claims 2,300 Lives Across Europe
Declining Beer Consumption Signals Cultural Shift in Germany
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
×