Twitter (TWTR): Elon Musk Delivers Another Tender Offer Hint
The saga of Elon Musk’s cryptic tweets continues, with Tesla (NASDAQ:) CEO posting a series of dashes on Wednesday that indicate a missing word, followed by “is the Night.”
Some believe that the missing word could be “Tender,” as per F. Scott Fitzgerald’s book “Tender is the night.”
Shares of Twitter (NYSE:) surged by 27% when Musk said he had bought a 9.2% stake in Twitter earlier this month, a move that was followed by Musk’s $43 billion bid to buy the company and take it private, urging the social media giant to take a “poison pill” to protect itself.
On Monday, Musk posted a tweet saying “Love Me Tender,” the title of Elvis Presley’s song in response to Twitter’s decision to sell its stock at a discount price in a bid to prevent individual shareholders from increasing their stake to more than 15%.
Musk, who now holds a 9.1% stake in the social media company, is reportedly prepared to invest $10 billion – $15 billion of his own capital to take Twitter private, according to the New York Post.
The report says that Musk will launch the bid in roughly 10 days and has hired Morgan Stanley (NYSE:) to secure an additional $10 billion in debt. The billionaire may also borrow against his current stake in Twitter if needed, which would allow him to secure another several billion dollars.
However, other private equity firms are now also interested in a Twitter deal. Last week, tech-oriented private equity firm Thoma Bravo has reportedly reached out to Twitter to explore a takeover offer.
Musk has more than 82 million followers on Twitter and has posted over 17,000 tweets, with many of his recent tweets being focused on Twitter itself and how it could be improved.
Twitter stock price is up 1.5% in pre-open Wednesday.
By Senad Karaahmetovic
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