Talks between the board of Twitter Inc. and business magnate, Elon Musk are yielding positive results that may lead to the eventual sealing of the $43 billion sales deal any moment from now.
Reports say the social media company is now working out the terms of a transaction and could reach an agreement soonest if negotiations go smoothly. Musk is also lining up partners for the acquisition and continues to speak to potential co-investors, according to sources close to the deal.
Bloomberg reports that the two parties are discussing a takeover at $54.20 per share. The talks had continued overnight into the early hours of Monday.
Twitter had been expected to rebuff the offer, which Mr. Musk made earlier this month without saying how he would pay for it. But after he disclosed last week that he now has $46.5 billion in financing, Twitter is taking a fresh look at the offer and is more likely than before to agree to the offer after negotiations.
“Twitter is still working on an all-important estimate of its own value, which would need to come in close to Mr. Musk’s offer, and it could also insist on sweeteners such as Mr. Musk agreeing to cover breakup protections should the deal fall apart,” the Wall Street Journal quoted people involved in the deal as saying.
- After purchasing about 9.2% of Twitter and becoming the largest shareholder, Elon Musk made an offer to purchase the microblogging site for over $41.39 billion.
- Musk also turned down an opportunity to be on the Twitter board after initially agreeing to the gesture.
- Explaining his interest in Twitter, Musk said his vision for the social media platform is a public town square where there are few restrictions on what people can or can’t say on the Internet.
- In a new United States’ Security and Exchange Commission filing, Musk said he would finance the $43 billion offer for Twitter through a combination of Morgan Stanley debt and equity financing he would contribute himself.