A deal to sell Twitter to Tesla CEO Elon Musk could be finalized as soon as Monday, reports said on the day of the deal’s announcement.
Twitter may make an announcement about the deal later today, according to media reports citing unnamed sources. The talks are still ongoing.
In what he called his “best and final” offer, Musk has offered $43 billion to buy out Twitter’s entire stockholders.
Reuters reported that Elon Musk, CEO of Tesla, would buy $54.20 per share of Twitter if the deal went through.
As soon as Twitter’s board of directors has met to approve the $43 billion deal for shareholders, sources tell the news agency, Twitter will announce the deal later on Monday.
Social media giant is “working to hammer out terms of a transaction and could reach an agreement by Monday if negotiations go smoothly,” a person with knowledge of the matter told Bloomberg.
A go-shop provision in the agreement between Twitter and Elon Musk so far has not been implemented, according to sources, which would allow the company to look at other bids from potential acquirers after the deal is signed.
Even so, Twitter could accept an offer from another party if it paid Musk a break-up fee, according to sources quoted by Reuters.” Twitter and Tesla CEO Elon Musk have yet to respond to questions about this.
Sources tell Reuters that Twitter and Elon Musk are now in negotiations over the social media company’s $43 billion acquisition offer, which he wooed many of the social media company’s shareholders with financing details earlier in the day.
Elon Musk, CEO of Tesla Inc. and a vocal supporter of Musk’s takeover bid, has been meeting with Twitter shareholders in recent days. He has stated that in order for Twitter to grow and become a legitimate platform for free speech, it must be taken private.
According to a report by Reuters, after Musk presented a detailed financing plan for his bid on Thursday, a large number of Twitter shareholders contacted the company to urge it not to let the opportunity for a deal slip away.
Earlier this month, Elon Musk revealed that he had purchased a 9.2% stake in Twitter, and on April 14 he filed a regulatory filing saying he had offered to buy the entire company. I invested in Twitter because I believe it can be a platform for free speech around the world, and I believe that free speech is a societal imperative for a functioning democracy,” Musk explained.
Twitter, on the other hand, was adamantly opposed to this proposal, so it decided to use a “poison pill” to thwart it. Tesla’s CEO, on the other hand, refused to give up and announced that he has secured USD 46.5 billion to purchase the social media company. When Twitter’s board of directors meets to discuss the negotiations, it’s possible that the deal could fall apart.