Written by: Sophie Lund-Yates | Hargreaves Lansdown
Elon Musk’s unsolicited offer to takeover Twitter has shocked the market. However, the move shouldn’t come as too much of a surprise in reality, when his decision not to take up a seat on Twitter’s board strongly suggested a takeover was in Musk’s thoughts. The move has been positively responded to by Twitter’s shareholders, but there are plenty of hurdles to clear before anyone signs on a dotted line.
Elon Musk thinks Twitter’s potential is stifled by current management and its position as a public company. Changing either of those things is an enormous move, and one that will sting the ego of the existing management team. The premium being offered by Musk to takeover the company suggests he thinks very highly indeed of what Twitter could be, but not what it is at present.