Elon Musk posted a puzzling tweet on Saturday referring to a 1956 hit by the famous Elvis Presley "Love me tender". Possibly directed at the board of Twitter, it maybe a potential 'tender' offer he could make for the social media giant which he offered to buy for $43 billion on Thursday.
This move comes after Twitter board unanimously adopted the 'poison pill' provision on Friday so as to pose more challenges for the Tesla CEO or any group of investors that plans to acquire the social media giant.
According to a Verge report, Twitter announced to its employees on Thursday that it is assessing $54.20 share proposal by Musk. Later it was reported that the board perceives it as an unwelcoming one and would probably reject it.
A tender offer, in simple terms, is described as a proposal made to buy some or all of the stock of the shareholders in a particular company. These offers are usually set at a higher price per share than the company's current stock price, in order to provide shareholders a greater incentive to sell their shares.
In a response to a user who had underlined that the present day Twitter board altogether owns only a few shares of the company, the Tesla CEO wrote, "wow, with Jack departing, the Twitter board collectively owns almost no shares! Objectively, their economic interests are simply not aligned with shareholders." Twitter co-founder Jack Dorsey stepped down as CEO in November 2021.
As per Bloomberg Intelligence analysts, there are talks that the SpaceX CEO may attempt to join hands with investors like the Oracle Corp., as Larry Ellison, its chief executive officer, is a member of Twitter's board. Other possible options include a group of private equity firms such as Thoma Bravo.
The partnership with Thoma Bravo most probably could raise the bid to $50 billion, the analysts believe because the technology-focused private equity firm possesses more than $103 billion in assets under management and had previously informed Twitter that it was considering the likelihood of putting together a bid, as per Reuters.
At a TED conference on 14th April Musk said that he is "unsure" if he'll actually be able to acquire the company, but has a back-up plan and did not reveal any further details regarding it.