Twitter Inc’s (NASDAQ:TWTR) board of directors had its back against the wall after Tesla Inc (NASDAQ:TSLA) CEO Elon Musk revealed he had secured funding to purchase the social media platform, said Wedbush analyst Dan Ives.
What Happened: Ives said in a note that “It all came down to no other bidders or white knights emerging in the M&A process and Twitter's Board back was against the wall once Musk detailed his $46 billion in financing last week to get pen to paper on this deal.”
Ives said this “soap opera” now ends with Musk owning Twitter.
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Why It Matters: Ives does not see any major regulatory hurdles to the deal. He noted that Twitter’s board got some extra time with the “poison pill.”
The analyst had said earlier in the month the Twitter drama would end with a takeover.
Musk said Monday that he wants to make Twitter better by adding new features and making the social media website’s algorithms open source. He said the platform has “tremendous potential.”
Price Action: On Monday, Twitter shares closed 5.6% higher at $51.69 in the regular session and rose 0.4% in extended trading. On the same day, Tesla shares closed 0.7% lower at $998.02 in regular trading, according to data from Benzinga Pro.
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