Many investors and analysts expect Twitter to reject Elon Musk’s $43-billion acquisition offer in the coming days. What then? What are Elon Musk's options if his Twitter bid gets rejected? Elon Musk, the billionaire businessman, has some options if Twitter rejects his nearly $43 billion bid. Twitter (ticker: TWTR) confirmed Thursday it had received the offer. Committed financing is the key to Elon Musk's $43 billion bid to buy Twitter. It's unclear if the billionaire has it, which casts doubt on the offer's viability. But assuming Musk *does* have the financing, and the board still says no, here are some possibilities:
Elon Musk's Options If Twitter Rejects His Bid
Here are some options available to the social media mogul:
- Sweeten the Deal: Musk could increase his offer price per share. Musk’s first public comment regarding the deal came hours after he sought to buy 100% of Twitter for an all-cash offer of $54.20 per share. The deal was valued at $41. That initial offer may not be enough to sway the board. A higher offer demonstrates greater commitment and could pressure the board to reconsider.
- Launch a Tender Offer: He could bypass the board entirely and take his offer directly to Twitter shareholders. This involves launching a tender offer, inviting shareholders to sell their shares directly to him at his proposed price. This approach can be effective if shareholders believe Musk's offer is the best price they're likely to receive.
- Proxy Fight: Musk could initiate a proxy fight, attempting to replace some or all of the current board members with individuals who are more receptive to his acquisition proposal. This would involve rallying shareholder support for his alternative board slate.
- Acquire More Shares & Increase Pressure: Musk already owns a significant stake in Twitter. He could continue to accumulate more shares, increasing his influence and potentially making a takeover more difficult for others to block.
- Walk Away: While perhaps not ideal, Musk could ultimately decide to withdraw his offer altogether. 'I'm not sure that I will actually be able to acquire' Twitter, he stated, indicating this as a possibility.
Twitter's board is currently evaluating the bid and many investors and analysts say that rejection is likely, barring any changes to the offer from Musk. Here are some factors they are considering. Elon Musk has a backup plan if his $43 billion bid to take Twitter private is rejected by the company's board of directors, but the details of that plan remain unclear. Ultimately, the decision rests with the board, but Musk has several avenues to pursue if they initially reject his offer.