Explainer | What’s next after Twitter agreed to Elon Musk’s US$44 billion takeover bid?
- Deal will shift control of the social media platform to the world’s richest person
- Transaction will be subject to a shareholder vote, review by regulatory agencies
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.
Offer accepted, now what?
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.
