July 19, 2024

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Elon Musk is ‘Not sure’ if his bid to buy Twitter will succeed

Elon Musk, the CEO of Tesla, has confessed that he is “not confident” whether his takeover offer for Twitter would succeed. He made the comments during a press conference just hours after announcing an offer to buy the company for $54.20 per share, valuing it at $43 billion dollars.

Twitter’s CEO also addressed employees on Thursday that the firm was examining the approach.

At the staff meeting, Parag Agrawal reportedly stated that the offer was not holding the company hostage. He announced his offer to buy all of Twitter’s shares that he does not already hold on Thursday.

The billionaire stated that his investment firm, Kingdom Holding Company, owns a stake in Twitter. Mr Musk, on the other hand, instantly responded by inquiring how many Twitter shares Prince Alwaleed’s company holds, followed by the question, “What are the Kingdom’s views on journalist freedom of speech?”

Twitter said that it has received the offer, but that its board of directors must still consider the “unsolicited, non-binding” offer, which values the company’s stock at a fraction of what it was worth last summer at more than $70.

Mr Musk controls more than 9% of the social media network, but he is no longer the company’s largest shareholder.

Vanguard Group, an asset management firm, announced on April 8 that its funds now held a 10.3 per cent stake in the company, knocking him off the top spot.

According to Forbes magazine, Mr Musk is the world’s richest man, owing to his stake in the electric vehicle company Tesla, where he also serves as CEO.

He hasn’t said anything about how he plans to fund his bid for Twitter. Morgan Stanley, a US investment bank, is advising Mr Musk.

He believes that taking Twitter private and out of the hands of shareholders will help the company.

As it contemplates how to respond to the takeover proposal, Twitter’s board has engaged the expertise of another Wall Street bank, Goldman Sachs.