It appears that Elon Musk’s “Plan B” to acquire Twitter is coming together. Using just 3 words and a fill-in-the-blank, Musk dropped a major hint to Twitter by writing, “_____ is the Night.”
The NY Post says the answer must be “Tender is the Night,” which is a famous novel by F. Scott Fitzgerald. It was later turned into a movie. This indicates that Musk is planning a tender offer, which would be an effort to go around Twitter’s board of directors and directly to the shareholders.
Some people are finding it fun to play Musk’s word games as he drops clues to Twitter about his next move. This isn’t the first time that Musk dropped this sort of hint. He previously tweeted “Love me Tender” just four days earlier.
Twitter’s left-wing board of directors has pushed back against Musk’s $43 billion cash offer to purchase the company by initiating a “poison pill,” a method of diluting Musk’s shares in order to weaken his current standing. Musk currently is the largest shareholder with over 9% of the company valued at roughly $3 billion. Take a look at Musk’s tweets below:
_______ is the Night
— Elon Musk (@elonmusk) April 20, 2022
🎶 Love Me Tender 🎶
— Elon Musk (@elonmusk) April 16, 2022
A tender offer often occurs when an investor proposes buying shares from every shareholder of a publicly traded company for a certain price at a certain time. The investor normally offers a higher price per share than the company’s stock price, providing shareholders a greater incentive to sell their shares.
Musk is reportedly working on a “complex deal that raises debt against both the company and possibly his stock, as well as a giant cash equity infusion from co-investors.”
More on this story via NY Post:
Musk himself is willing to invest between $10 billion and $15 billion of his own cash to take Twitter private, two sources close to the situation said. That’s up from the current 9.1% stake in the company he revealed on April 4, which is worth about $3.4 billion.
Musk may also be willing to borrow against his current stake if necessary, a move that could possibly raise several billion additional dollars, sources said.
“The co-investors will combined have more equity than Musk but he will be the biggest single holder,” one of the sources said.
Nevertheless, it’s mainly outside financing that will carry the bid for Musk, who has tapped Morgan Stanley to raise another $10 billion in debt against Twitter in the manner of a traditional leveraged buyout, the sources said.
As first reported by The Post on Friday, however, the bulk of the money — about $20 billion, according to sources — will come from co-investors who will finance a hostile tender offer directly to Twitter shareholders, sources said.