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American News Apr 24, 2022 2:49 PM EST

BREAKING: Twitter reconsiders Elon Musk's takeover bid after $46.5 billion in financing secured

Both sides are reportedly meeting Sunday to discuss Musk's proposal.

BREAKING: Twitter reconsiders Elon Musk's takeover bid after $46.5 billion in financing secured
Hannah Nightingale Washington DC

Twitter is reportedly re-examining SpaceX and Tesla CEO Elon Musk's $43 billion offer to buy the Big Tech company after he revealed that he has now secured $46.5 billion for the potential buyout.

According to The Wall Street Journal, Twitter had been ready to reject the offer, but will take a new look at it after the business magnate revealed his filing with the SEC showing that he has lined up financing for the offer.

The financing includes $22.5 billion which will come from his own equities.

People familiar with the matter told The Wall Street Journal that the revelation makes it more likely for Twitter to seek to negative the offer with Musk.

"The situation is fast-moving and it is still far from guaranteed Twitter will do so," The Wall Street Journal noted.

Some of the people said that Twitter is still working on an estimate of its own value, and could also insist on sweeteners for the deal such as Musk covering breakup costs if the deal falls through.

The two sides are reportedly meeting on Sunday to discuss Musk’s offer.

The company is expected to address on the bid when it reports first-quarter earnings Thursday, if not sooner, the people said.

Their response could leave the door open to other bidders, or negotiating with Musk on terms not included in the price.

The people told The Wall Street Journal that Musk remains firm on his offer of $54.20-a-share.

The potential turnaround from Twitter comes as Musk met with several shareholders of the company privately on Friday to talk up his proposal through a series of video calls.

According to The Wall Street Journal, Musk reportedly has a few shareholders behind him following the meetings.

Lauri Brunner, who manages Thrivent Asset Management LLC’s large-cap growth fund, said. "He has an established track record at Tesla," she said. "He is the catalyst to deliver strong operating performance at Twitter."

Musk has reportedly said he is considering taking his bid directly to shareholders by launching a tender offer, but even if he was to get significant shareholder support, he would still have to work around the company’s "poison pill."

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