Twitter and Elon Musk Could Strike Deal as Soon as Monday: Report
Twitter and Elon Musk are at the tail-end of hammering out terms for the latter’s proposed $43 billion USD takeover of the social media company, and according to people familiar with the matter, the two parties may reach an agreement as soon as Monday if negotiations go smoothly — reports Bloomberg.
Discussions between Twitter and the Tesla CEO about the bid continued overnight and into the early hours of Monday, the people said.
Another report from Reuters suggests Twitter’s board of directors is ready to recommend Musk’s “best and final” offer of $54.20 per share to investors. The company should be ready to announce the deal later on Monday, sources told the publication.
Twitter didn’t take too kindly to Musk’s unsolicited offer at first, with the company’s board announcing the adoption of a limited duration shareholder rights plan — commonly referred to as a “poison pill” — to prevent Musk from acquiring more than 15% of the company just one day after he placed his bid.
If the company’s board wasn’t receptive to the buyout, Musk was already considering plans to approach shareholders directly with a tender offer.
According to a report from Tesla North, the social media giant warmed up to Musk’s offer and sat down with his team on Sunday to take another look at it after the celebrity billionaire raised $46.5 billion in financing for the deal.
Musk did not specify how he would pay for the acquisition when he made his original offer, but he later raised $13 billion in debt financing, $21 billion through equity financing, and a $12.5 billion margin loan commitment from Morgan Stanley and 11 other banks, secured in part by his holdings in Tesla.
One source said Musk continues to speak to potential co-investors despite the deal now being in the home stretch.
The situation is developing fast, and negotiations could still drag on longer than expected or break down entirely, said sources.