An ambiguous reference to an Elvis Presley song released in 1956 could hint at the next phase of Elon Musk’s effort to buy Twitter.
Musk once again sparked speculation about his plans when he tweeted “Love Me Tender” on Saturday. The tweet came hours after Twitter’s board of directors issued a “poison pill” regulation aimed at limiting Musk’s ability to acquire a larger stake in the company.
In another tweet, Musk posted an upside down smiley face emoji while resurrecting a thread from 2017 asking how much it was would it cost to buy Twitter outright.
While Musk didn’t provide any further details in the posts, the reversion to Elvis is a potential signal that the billionaire is considering a hostile bid to bypass Twitter’s board of directors and make a direct offer to the company’s shareholders.
In a so-called takeover bid, a prospective buyer pursues a takeover by publicly asking shareholders to sell their shares at a certain price.
The poison pill rule — a defensive tactic often used in takeover battles — would flood the market with discounted Twitter stock if Musk acquired more than 15% of the company. Musk currently owns about a 9% stake.
Musk has demanded that Twitter’s board of directors let shareholders decide whether to accept his offer — a possible precursor to a formal bid for control of the company.
“It would be absolutely untenable not to subject this offer to a shareholder vote. They own the company, not the board,” Musk tweeted last week, hours after his offer was made public.
Twitter’s board of directors has yet to make a final decision on Musk’s initial bid to buy the company for approximately $43 billion. But Musk declined a seat on the company’s board after a falling out with current management over Twitter’s future direction.
During an appearance at a TED Talk conference in Vancouver last week, Musk said he has a “plan B” he can use if Twitter declines his offer, though he has yet to disclose the alternative route.
Musk would likely need to partner to fund a takeover bid, which is generally offered at a premium to a company’s current share price. Twitter shares hovered around the $45 mark ahead of Monday’s opening bell.
And Musk already faces competition from other companies interested in taking over Twitter. As reported by The Post, private equity giant Thoma Bravo is working on a possible takeover bid for the company.
https://nypost.com/2022/04/18/elon-musk-posts-cryptic-tweet-as-twitter-battle-escalates/ Elon Musk posts a cryptic tweet as the Twitter fight escalates