Twitter’s board of directors is considering the tender offer. In a call with staff Parag Agrawal, its chief executive, said the company refused to be “held hostage” by mogul Tesla and Space X. Mr Musk’s other business interests include the tunneling company and infrastructure The Boring Company.
The board’s ‘poison pill’ tactic would allow existing shareholders to buy more shares at a discount, if Mr Musk increased his stake – diluting the billionaire’s stake.
So far, Mr. Musk has built a 9% stake in the technology company. He argued that taking the company private would help it become a more powerful platform for free speech, at a time when critics say it is an echo chamber for left-wing views.
Despite a personal fortune of over a quarter of a trillion dollars, he is believed to be seeking partners to join in the Twitter buyout, with Silver Lake’s potential involvement first reported by the New York Post.
His offer values Twitter shares at $54.20. That equates to 38% above the level the shares were trading at before its stake in the tech company was disclosed.
However, that still represents a decline from the company’s price last year: Twitter traded at $63 six months ago and peaked at over $77 per share in March 2021.
Silver Lake declined to comment.