Elon Musk has made it clear that his primary goal in buying Twitter is to support unfettered expression and reduce user bans or takedowns of individual tweets
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Twitter may announce the $43 billion deal later on Monday once its board has met to recommend the transaction.
The company's decision to engage with Musk, taken earlier on Sunday, does not mean that it will accept his $54.20 per share bid, the sources said
As Musk ramps up his battle to buy Twitter, the lingering ramifications of his prior use of the social media platform may come back to haunt him
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This will have an impact on Musk's returns, since debt secured against an acquired company can greatly amplify profits
The 'poison pill' provision will be triggered if Musk (or any other investor) acquires more than 15 per cent of the company's shares. Musk currently owns around 9 per cent of Twitter's shares
Musk's tweets, public remarks and policies at the businesses he runs, shows little tolerance for speech that's unflattering to him or his companies, or reflects employee criticism of the workplace
Musk currently has about $3 billion in cash or other somewhat liquid assets after spending $2.6 billion buying a 9.1 per cent stake in Twitter in recent months, according to calculations
Late last year, Musk netted $16.4 billion from selling about 10 per cent of his stake in Tesla to meet tax withholding obligations related to the exercise of stock options
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Musk is evaluating various packages of debt, including more senior debt known as preferred debt and a loan against his shares of Tesla, the electric carmaker that he runs, two of the people said
The offer from Musk, who has hinted at the possibility of a hostile bid, has prompted the social media company to adopt a 'poison pill' to protect itself
Koo's latest move comes at a time when transparency and free speech concerns have dominated the public narrative around social media platforms such as Twitter
Musk had earlier posted a tweet with "Love Me Tender," bracketed by musical notes
Twitter is trying to fend off a hostile takeover bid by one of its shareholders and world's richest man, Elon Musk. And for this, it has invoked an old strategy called poison pill. What is it?