What’s next now that Twitter agreed to Musk bid? Explained

Twitter’s acceptance of Elon Musk’s roughly USD44 billion takeover bid brings the billionaire Tesla CEO one step closer to owning the social media platform. The deal is expected to close sometime this year. But before that, shareholders still have to weigh in, as well as regulators in the US and in countries where Twitter does business, before the deal is completed. The process is off to a good start for Musk, given that Twitter’s board has unanimously approved his offer and is recommending shareholders do the same.

Upon announcing the deal Monday, Twitter noted that the bid, which represents a 38 per cent premium to the company’s closing stock price on April 1, is a “substantial cash premium” and would be “the best path forward for Twitter’s stockholders.” When Twitter’s board adopted an anti-takeover provision known as a “poison pill” just 10 days ago, the move was widely seen as a telltale sign that the directors were gearing up to rebuff Musk’s opening offer or perhaps seek another suitor willing to pay more.

But the battleground shifted dramatically late last week when Musk disclosed he had lined up USD46.5 billion — including USD21 billion of his personal fortune — to pay for the purchase. Musk said other investors could contribute to the financing. The locked-in financing not only underscored the seriousness of Musk’s pursuit, but also appeared to open the door to other large Twitter shareholders interested in hearing more about his plans for the San Francisco company. (AP)