Elon Musk's Bid to Buy Twitter Is Reportedly Being Considered

There is still a possibility that Elon Musk could end up as the new owner of Twitter. A report from the Wall Street Journal claims Twitter is reconsidering Musk's bid to buy the company after he secured $46.5 billion in financing. The saga between Elon Musk and Twitter began when the former let his intentions be known that he wanted to join Twitter's board of directors. That ultimately didn't happen after Musk backed out after being subjected to a background check. Not to be deterred, Musk marched forward with a takeover of Twitter.

The company is now reportedly considering Musk's new offer, with sources stating Twitter is open to negotiations. However, with a deal of this magnitude and lots of moving pieces, nothing is set in stone. Other information being reported include Twitter working to find an estimate of its own value, which needs to be close to Musk's offer. There is also the matter of Musk agreeing to cover breakup protections if the deal should fall apart. A meeting between Twitter and Elon Musk is reportedly taking place on Sunday, April 24th.

Twitter is reporting its first-quarter earnings on Thursday, where more information on the bid is expected to be revealed. It's possible Twitter invites more bidders to enter the fray, or more negotiating with Musk could take place. In either case, Musk has reportedly insisted that he isn't budging from his offer of $54.20-a-share when he spoke to Twitter chairman Brett Taylor.

The reasons behind Elon Musk wanting to buy Twitter stem from the billionaire's criticisms of the social media platform not living up to its ideal as a free speech arena. By acquiring a controlling interest in Twitter, Musk could then privatize the company, and structure its rules and algorithms as he sees fit.   

"I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy," Musk stated in a previous filing with the SEC (via AP). "However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company."

Twitter investors are also suing Musk for not disclosing his stake in the company by a legally mandated date, allegedly shorting them on the sell price for the stock. The company has also put a "poison pill" agreement in motion, to disrupt a possible takeover from Musk.

"The Rights Plan is intended to enable all shareholders to realize the full value of their investment in Twitter. The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium or without providing the Board sufficient time to make informed judgments and take actions that are in the best interests of shareholders," the Twitter board said in a statement.

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