The CEO of Twitter, Parag Agrawal, informed the company's employees that the board is still evaluating billionaire Elon Musk's offer to acquire the platform.
According to Bloomberg News, sources who requested anonymity reported that Agrawal's remarks came during a meeting with employees on Thursday evening, in response to questions regarding potential scenarios related to the acquisition. The sources indicated that Agrawal's tone was neutral and that he did not disclose the board's stance on the acquisition. He added that determining the best decision in favor of shareholders is a "rigorous process."
The meeting lasted about thirty minutes, and Twitter declined to comment on these reports.
It is noteworthy that American billionaire Elon Musk, who is the head and owner of the American electric vehicle company Tesla, offered to purchase all outstanding shares of the social media platform Twitter.
Musk sent a letter to Twitter containing a non-binding proposal to buy all outstanding common shares not owned by him, offering $54.20 per share in cash. If the proposed deal is completed, the common stock will be eligible for deregistration and will be delisted from the New York Stock Exchange.
Musk is working with the financial services firm Morgan Stanley as a financial advisor. He stated, "Twitter needs to be transformed into a private company. As a result, I am offering to buy 100% of Twitter for $54.20 per share in cash, which represents a 54% premium over the day before my investment in Twitter and a 38% premium over the day before my investment was publicly announced. This is my best and final offer, and if it is not accepted, I will need to reconsider my position as a shareholder."
Musk's chance of success with his offer remains unclear. Twitter was recently valued at $36 billion, while Musk's offer values it at $43 billion. Musk's current wealth is estimated at about $260 billion, making him capable of financing the offer; however, it remains uncertain whether he can persuade the current owners to sell to him.
Musk stated on Thursday that he is unsure if he will succeed in the purchase. Twitter said it is considering its options with the interests of the company and investors in mind.
Additionally, Musk has over 80 million followers on Twitter and is one of the platform's most popular users. He said he is investing in the site because he views it as an effective tool for free speech, which he noted is vital for effective democracy. However, he indicated that he does not believe the company is ready for this mission from both editorial and financial standpoints.
