New York: Twitter Inc. is set to agree a sale to Elon Musk for about $43 billion in cash, in what the Tesla Inc chief executive called his “best and final” offer for the social media company, people familiar with the matter said.
Sources said Twitter could announce a $54.20 per share deal later on Monday, when its board has met to recommend the transaction to Twitter shareholders. Sources said it is always possible that the deal breaks down at the last minute.
Musk, the world’s richest man, is in talks to buy Twitter in a personal capacity, and Tesla is not involved in the deal, according to a Forbes tally.
Sources said Twitter is yet to secure a ‘go-shop’ provision under its agreement with Musk, which would allow it to solicit other bids once the deal is signed.
Still, Twitter will be allowed to accept another party’s offer by paying Musk a break-up fee, the sources said.
The sources requested anonymity as the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.
Twitter shares were up 4.5% on Monday at $51.15 in pre-market trading in New York.
Musk has said Twitter needs to be taken personally for growth and to become a de facto platform for freedom of expression.
The deal will come four days after Musk unveiled a financing package to support the acquisition. This prompted Twitter’s board to take the deal more seriously, and several shareholders told the company not to squander a deal opportunity, Reuters reported on Sunday.
The sale will represent an admission by Twitter that its new chief executive Parag Agarwal, who took over in November, will do enough to make the company more profitable, despite the company being on track to meet ambitious financial goals set for 2023. Not building traction. Twitter shares were trading above Musk’s offer price as recently as November.
Musk’s negotiating strategy — making an offer and sticking to it — resembles how another billionaire, Warren Buffett, negotiates an acquisition. Musk did not provide any financial details when he first disclosed his proposal for Twitter, leaving the market skeptical about its prospects.
Sources said Twitter could announce a $54.20 per share deal later on Monday, when its board has met to recommend the transaction to Twitter shareholders. Sources said it is always possible that the deal breaks down at the last minute.
Musk, the world’s richest man, is in talks to buy Twitter in a personal capacity, and Tesla is not involved in the deal, according to a Forbes tally.
Sources said Twitter is yet to secure a ‘go-shop’ provision under its agreement with Musk, which would allow it to solicit other bids once the deal is signed.
Still, Twitter will be allowed to accept another party’s offer by paying Musk a break-up fee, the sources said.
The sources requested anonymity as the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.
Twitter shares were up 4.5% on Monday at $51.15 in pre-market trading in New York.
Musk has said Twitter needs to be taken personally for growth and to become a de facto platform for freedom of expression.
The deal will come four days after Musk unveiled a financing package to support the acquisition. This prompted Twitter’s board to take the deal more seriously, and several shareholders told the company not to squander a deal opportunity, Reuters reported on Sunday.
The sale will represent an admission by Twitter that its new chief executive Parag Agarwal, who took over in November, will do enough to make the company more profitable, despite the company being on track to meet ambitious financial goals set for 2023. Not building traction. Twitter shares were trading above Musk’s offer price as recently as November.
Musk’s negotiating strategy — making an offer and sticking to it — resembles how another billionaire, Warren Buffett, negotiates an acquisition. Musk did not provide any financial details when he first disclosed his proposal for Twitter, leaving the market skeptical about its prospects.