After adopting a “poison pill,” Twitter is reportedly in talks with Elon Musk to acquire the social media platform.
On Sunday, the billionaire provided financial details into his $43 billion offer to purchase the company, which appeared attractive to the company’s board. While this isn’t a guarantee that the company will accept his offer, the decision to participate in discussion is notable.
Twitter’s poison pill would keep him from raising his stake above 15% without board approval. In response to the rule, Musk said he would make a tender offer that would allow Twitter shareholders to support the deal.
Over the last several days, Musk has been engaging with Twitter shareholders to gain support for his offer to buy the social media firm. If successful, he claims he will take it private and revamp its policies to emphasize free speech.
While the poison would still keep shareholders from being able to tender their shares, Twitter is concerned that its refusal to consider Musk’s bid would hinder its negotiation abilities and go against the desire of investors.
When Musk initially proposed the deal, he claimed it was his “best and final” and would potentially sell off his 9.2% share if it was not accepted. However, the new discussions may see Twitter’s board seeking better terms.
In the meantime, Twitter is looking into any investigations into Musk by regulators, such as the U.S. Securities and Exchange Commission (SEC). In the past, Musk has been accused of misleading investors and breaking SEC foreclosure policies.
The social media company is also seeking to know whether regulators would oppose Musk’s acquisition.