Tesla, Inc. (NASDAQ:TSLA) CEO Elon Musk made overtures toward Twitter, Inc. (NYSE:TWTR), which expectedly was met with resistance from Twitter's board. Since then, Musk has been posting cryptic tweets, suggesting he could become belligerent.
What Happened: The Tesla CEO tweeted late Friday "The Barbarians are at the Gate," which to some might suggest gibberish. "Barbarians at the Gate: The Fall of RJR Nabisco" is a 1989 bestseller which chronicled the leveraged buyout (LBO) of tobacco and food giant RJR Nabisco, and was written by investigative journalists Bryan Burrough and John Helyar.
Private-equity fund KKR & Co. Inc. (NYSE:KKR) bought out RJR Nabisco for $25 billion in the largest LBO in history. The deal was done following a protracted takeover battle between KKR and the company's management. It was the first time KKR went ahead with a takeover without the concurrence of the company's management.
What is best in life?
— Elon Musk (@elonmusk) April 22, 2022
Related Link: Does Elon Musk's About-Face On Twitter Portend 'Game Of Thrones' Battle Ahead?
Why it's Important: In an amendment to the 13D form filed with the SEC on Thursday, Musk said he has received commitment letters for up to $46.5 billion of debt financing from a consortium of investment banks, including Morgan Stanley. An equity commitment letter from Musk himself was also attached as part of the filing.
Twitter for its part adopted a poison pill after Musk's disclosure of his intent to take the company private. Reports suggested PE firm Thoma Bravo could table a competing bid, although neither the PE firm nor Twitter have confirmed any proposal as yet.
Musk has previously conveyed through a few cryptic tweets that he might go in for a tender offer, taking the fight directly to shareholders. Twitter closed Friday's session 3.93% higher at $48.93, according to BenzingaPro data.
Photo: Adapted from image from Daniel Oberhaus on Flickr
