Twitter has started negotiations with Tesla boss Elon Musk about his billion-dollar offer for the social media company, Reuters news agency reported based on insiders. However, negotiations underway do not immediately mean that Twitter will also accept Musk’s offer.
However, according to the insiders, it shows that Twitter is investigating whether a sale to Musk is possible under attractive conditions.
Over the past few days, Musk has been meeting with Twitter shareholders to rally support for his offer. Musk is willing to pay $43 billion to take Twitter off the stock exchange. In this way, he can grow the company and, in his own words, turn it into a platform for freedom of expression.
Many shareholders took to Twitter after Musk unveiled his plans for the acquisition last week, emphasizing that the company should not miss this opportunity. Musk announced in mid-April that he wanted to buy Twitter. Twitter then rose to nearly $2 billion in market capitalization.
Musk’s description of his offer as “best and last” could pose another obstacle in the negotiations, the sources said. As a result, Twitter would also try to gather more information about whether Musk can afford the acquisition and possibly negotiate better terms and prices.
Twitter is concerned, among other things, about ongoing investigations by the US stock market regulator, Securities and Exchange Commission (SEC). Musk is said to have violated the regulator’s rules when he bought himself into Twitter earlier this year to report this promptly.
In 2018, Musk already got the SEC after he tweeted that he wanted to take Tesla off the stock exchange. That caused a significant increase in Tesla’s share. Musk then settled with the regulator. He then promised to have all his tweets that could influence the Tesla stock price checked in advance by lawyers.