Elon Musk offered to buy Twitter (TWTR) for $54.20 per share in a filing released Thursday, calling it “the best and last offer.”
But the CEO of Tesla (TSLA) will have to reconsider the offer if he is serious about taking over the social media company, an analyst says.
“Nobody believes that’s the final price. No board in America will take that number,” Jefferies analyst Brent Thill said.
Twitter shares jumped 4% on news of the all-cash offer, before falling Thursday afternoon. In the amended SEC filing, Musk wrote that his offer to pay $54.20 per share was equivalent to a 54% premium on the stock, compared to its price the day before Musk began investing in it. the society.
But in comments to TED2022, Musk questioned his plans to make Twitter private, saying, “I’m not sure I can get it.”
“The intention is to retain as many shareholders as the law allows in a private company,” he said. “So it’s definitely not from the perspective of letting me figure out how to monopolize or maximize my ownership of Twitter.”
Musk added that his decision was not about finding a way to “make money”.
“I don’t care about the economy at all,” he said.
Regardless of Musks’ motives, Thill said his offer just doesn’t fit Twitter’s board, in part because the billionaire hasn’t explained how he plans to “transform” the company. Thill also alluded to Musk’s use of the number “420,” a popular marijuana reference, as “bordering on unprofessional.”
“It will be nothing with a 420, OK, so take that off. Bring the offer to $60, then put some constructive structure in place on how they would handle it,” Thill said. “So maybe, can be, but that’s what it will take.”
Twitter publicly acknowledged the tender offer on Thursday, saying in a statement that it plans to “carefully review the proposal to determine a course of action that it believes is in the best interests of the company and all Twitter shareholders”.
But behind the scenes, the board reportedly viewed the offer as “unwelcome”, suggesting they are ready to put up a fight, according to The Information.
The potential battle comes just five months after new CEO Parag Agrawal took over as CEO from Twitter co-founder Jack Dorsey last fall. Thill said Musk’s offer could open the door to other interested bidders for the social media company, although Washington’s heightened antitrust scrutiny of big tech companies will likely prevent any deals from being struck.
“It’s tough because the government is going to say no to any big deal even if the rest of tech wanted to,” Thill said. “It’s hard to see who will be the next logical player.”
Akiko Fujita is a presenter and reporter for Yahoo Finance. Follow her on Twitter @AkikoFujita
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