Sources: Twitter's board met Sunday to discuss Elon Musk's bid, which is being considered more seriously after Musk's filing detailed $46.5B in financing

The company's 11-member board met with Mr. Musk to discuss his offer to buy the social networking service and take it private.

New York Times 2022-04-25

Context & Ripple Effects

Musk’s earlier non-binding $54.20-per-share proposal put a take-private transaction before Twitter’s board, but the subsequent financing disclosure gave the approach a defined funding base. The board’s engagement marks the shift from an unsolicited proposal toward a transaction process.

That shift was quickly borne out by Twitter’s later agreement to be acquired by a Musk-owned entity, with shareholder approval still required. The financing was therefore consequential not simply as a funding claim, but as the condition that made board-level negotiation viable.

First-order effects

Twitter’s directors moved from evaluating an unsolicited offer to directly negotiating with Musk, while the disclosed $46.5 billion made his bid more actionable.
Musk gained a more credible path to pursue the acquisition rather than relying solely on a public proposal; the related coverage says he was also exploring a tender offer.

Second-order effects

Twitter shareholders received a clearer cash-out scenario at $54.20 per share once the board began engaging and financing was documented.
Morgan Stanley and the other lenders tied to the financing became central counterparties in a potential transaction, because the bid’s execution depended on the debt package.

Third-order effects

The sequence illustrates how committed financing can force a public-company board to seriously engage with an unsolicited take-private proposal, even before a definitive agreement exists.
If repeated, this pattern shifts leverage in contested buyouts toward bidders that can pair a public premium with credible financing and an alternative tender-offer route.

The trend: Large take-private bids are increasingly won or lost on financing certainty as much as on the stated per-share price.

Discussion

@nytimes @nytimes on x
Breaking News: Twitter's board is seriously considering Elon Musk's $46.5 billion bid to buy the company, people with knowledge of the situation said. The board met on Sunday morning to discuss Musk's offer, after he began lining up financing last week. https://www.nytimes.com/..…
@mollyjongfast Molly Jong-Fast on x
This is going to be such a headache for him and possibly for us https://www.nytimes.com/...
@carnage4life @carnage4life on x
If Twitter doesn't post blowout results on Thursday, it's really going to raise the question of what credible reason the board has to oppose the buyout offer? It's really unlikely they'll surprise with either user or revenue numbers so Elon has upper hand https://financialpost.co…
@laurenshirsch Lauren Hirsch on x
If there is a deal (!) one thing I'm very curious about is the size/nature of the break up fee. That would be one way to help manage Musk's “volatility” (We don't know that there will be a deal.) https://www.nytimes.com/...
@supremezerker @supremezerker on x
Funny headline, because they are legally obligated to! https://twitter.com/...
@avik Avik Roy on x
NYT reporting that the board of @Twitter is now “seriously considering” the @elonmusk offer because the financing has been specified. The real reason is because no other offers are on the table at this time. https://www.nytimes.com/...
@omarjsakr Omar Sakr on x
I suppose I should be thankful if this happens. I'll finally be able to leave https://twitter.com/...
@wongmjane Jane Manchun Wong on x
If you plan to leave Twitter in case the deal goes through, how committed will you be about it? https://twitter.com/...
@scottnover Scott Nover on x
If I am on Twitter's board I want shareholders to think that we are seriously considering Musk's offer even if there's no chance in hell we're gonna take it. https://twitter.com/...
@brianstelter Brian Stelter on x
A person familiar with the matter confirms that the Twitter board's discussions about Elon Musk's bid have turned serious. The company's line: “As previously announced, the Board is continuing to conduct a careful, comprehensive and deliberate review...” https://www.cnn.com/...
@taylorlorenz Taylor Lorenz on x
This could be enough to finally kill this app and set us all free https://twitter.com/...
@karoli @karoli on x
Twitter belongs in the commons. Not in one man's hands. You'll find me elsewhere if this comes to pass. https://twitter.com/...
@cheryllynneaton Cheryl Lynn Eaton on x
I can't wait to see what steps up to become the new Twitter if/when this happens. Because Twitter will be done. Following right in the footsteps of Vine. That said, I wouldn't pass up $46.5 billion dollars either. https://twitter.com/...
@srushtigangdev @srushtigangdev on x
well, it's been a terrible time twitter. see u all on tumblr https://twitter.com/...
@danprimack Dan Primack on x
One thing to remember is how good of a salesman @elonmusk is. He convinced world to take electric cars seriously. Convinced NASA to take commercial space travel seriously. Doesn't mean Twitter happens — still think he's alone on the equity — but don't underestimate the man.
@ashtonpittman Ashton Pittman on x
So I guess we really are gonna just destroy Twitter to appease the whims of some billionaire manchild. https://twitter.com/...
@blackamazon @blackamazon on x
He's outside his next discrimination case and wants to buy the major outlet where folks have reported his malfeasance .. after Barack Obamas misinfo btalj did rocks And pro union activity has been using Twitter But hey y'all made sure no one that Black people mattered https://twi…
@carnage4life @carnage4life on x
Looks like the quarterly numbers aren't looking impressive since the board is going to take Elon's bid seriously versus the prior out of hand dismissal. I expect Twitter to sell to someone by the end of the year. The pressure Elon has created is too much. https://www.wsj.com/...

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