The news of the day is that Tesla (NASDAQ:TSLA) CEO Elon Musk made a cash offer to acquire 100% of Twitter (NYSE:TWTR) for 54.20 per share.
Musk said that this is his best and final offer and if not accepted, he would reconsider his position as a shareholder.
Twitter then confirmed it has received an unsolicited, non-binding proposal from Elon Musk, which will be carefully reviewed “to determine the course of action that it believes is in the best interest of the Company and all Twitter stockholders.”
Vital Knowledge’s Adam Crisafulli says the offer is “too low” given that Twitter shares were at about $70 less than a year ago.
Loup Ventures analyst Gene Munster believes the current offer to be Musk’s final one.
“Welcome to the world of Elon Musk -- unpredictable by design. His approach is to think big, he’s doing that here,” Munster told Bloomberg.
Finally, Wedbush’s Daniel Ives believes Musk will eventually get what he wants.
“We believe this soap opera will end with Musk owning Twitter after this aggressive hostile takeover of the company. It would be hard for any other bidders/consortium to emerge and the Twitter board will be forced likely to accept this bid and/or run an active process to sell Twitter,” Ives said in a client note.
He urged investors to prepare for a soap opera as he expects “many twists and turns in the weeks ahead as Twitter and Musk walk down this marriage path.”
Twitter stock price is up 6% in pre-market after initially soaring 13%.
By Senad Karaahmetovic