Elon Musk may enlist partners to buy Twitter
Elon Musk is considering enlisting his business partners to acquire Twitter. Musk is already in talks with possible investors to circumvent the Shareholder Rights Plan, which was adopted this week by the company’s board of directors amid Musk’s desire to buy the company outright.
The plan, dubbed the poison pill, allows other shareholders to buy more securities and provides for “ensuring all shareholders realize the full value of their investment” and reducing the likelihood that any entity, individual or group will gain control of the company by accumulating in the open market “without paying all shareholders an appropriate control premium or giving the board sufficient time to evaluate and act in the best interest of shareholders.”
One of Musk’s partners could be Silver Lake Partners. It is not yet clear whether Musk will make a larger offer or try to acquire the company with the new partners.
Reuters reported that Musk, who recently became Twitter’s largest shareholder, has offered to buy the company for $41.39 billion. Twitter’s board intends to carefully review his offer to determine what they believe would be in the best interests of the company and its shareholders.
According to the U.S. Securities and Exchange Commission, Musk owns 9.2 percent of Twitter. However, on April 11, he decided not to join the company’s board of directors.