Twitter ready to take Elon Musk takeover bid

Twitter’s stock jumped sharply Monday on news that the firm will accept Elon Musk’s hostile takeover bid soon, a drastic turnaround from the board’s initial “poison pill” defense to stave off the billionaire entrepreneur’s hostile takeover approach.

The acquisition, which The Wall Street Journal reported could be announced later today, would put the Tesla CEO in command of the powerful social media site, which is arguably best known for being the platform of choice for former US President Donald Trump at one point.

About 20 minutes into trading, Twitter stock was up 3.6 percent on an otherwise gloomy day in New York, with the Dow, Nasdaq, and S&P 500 all down 1%.

Musk announced his $43 billion hostile takeover bid for the firm earlier this month, touting it as a supporter of free expression.

MUSK ADOPTED A ‘POISON PILL’

While the board initially stated that it was studying the offer, it later rebuffed him and implemented a “poison pill” strategy that would make it more difficult for Musk to gain control of the company.

Musk, who is regarded as the world’s richest man due to the meteoric rise of Tesla electric automobiles and other businesses, announced last week that he had secured $46.5 billion in financing for the transaction and was “exploring” a direct tender offer to shareholders.

Musk stated in a filing that the acquisition was made possible by a $13 billion debt facility from a finance consortium managed by Morgan Stanley, a second $12.5 billion margin loan from the same bank, and $21 billion from Musk’s personal fortune.