Elon Musk has provided to buy Twitter at a valuation of about $43 billion. Right here’s what’s going to — or might — happen subsequent:
The board opinions the availability. The board will work with its advisers at Goldman Sachs to evaluation Mr. Musk’s provide. They need to ponder, amongst completely different points, whether or not or not the deal fairly values the company, and whether or not or not Mr. Musk has the financing to cobble collectively a deal.
The board cannot merely decide it doesn’t like Mr. Musk as a suitor, nonetheless they may “provide the cause why they don’t identical to the bid,” like, as an example, his capability to fund it, talked about Steven Davidoff Solomon, a professor on the School of Regulation on the School of California, Berkeley.
The board broadcasts its decision. The board will seemingly take up to some days to evaluation the availability. If it rejects the availability, it’d most likely go in actually one in all numerous strategies: It should most likely put in a safety mechanism commonly known as a poison capsule that limits the pliability of Mr. Musk, and every completely different shareholder, to buy up Twitter shares inside the open market.
As quickly because it does that, it could nonetheless decide to advertise itself, nonetheless with out the stress of Mr. Musk — or another suitor — threatening to amass it by looking for a wide selection of shares inside the open market.