Twitter is close to reaching an agreement with Elon Musk to accept his takeover proposal, which may be revealed as early as Monday. Twitter shares soared more than 5% in premarket trading on the claims of the company being close to accepting Elon Musk’s takeover bid.
According to Bloomberg News and Reuters, the two parties might strike a deal as soon as Monday. In addition, Twitter’s board negotiated with Musk until the early hours of Monday morning on the acquisition, as per the reports by The New York Times.
Elon Musk’s takeover bid to purchase Twitter for $54.20 per share, or around $43 billion, surfaced earlier this month. The social networking business anticipated to reject the proposal and has taken a “poison pill” to stave off a potential hostile acquisition. However, once Musk stated that he had acquired $46.5 billion in finance, Twitter became more amenable to an offer.
According to CNBC, a person close to the incident stated that “Twitter’s board met Sunday to consider Musk’s funding strategy for his planned purchase.”
There is no clarity on what the final agreement may look like, and the agreement might still crumble, reports Reuters. According to Reuters, Twitter has yet to get a ‘go-shop’ (a clause that permits a public corporation to seek rival bids even after receiving a definite purchase offer) agreement, which would allow it to seek alternative offers until it signs an agreement. The business might yet accept another proposal provided he (anyone making up alternative offers) pays Musk a break-up fee, according to the statement.
Twitter is yet to comment on the ongoing negotiations with Musk. When reached out for comment by CNBC, it declined to answer.
Elon Musk, the CEO of Tesla and SpaceX, has been aggressive in his pursuit to acquire the social media business. He had amassed more than 9% of Twitter’s shares and had turned down an opportunity to join the company’s board before making a bid for the company.
Musk earlier proposed to transform Twitter into a private firm so that it can serve as a venue for free expression. He further claimed that the interests of Twitter’s board members “are simply not aligned with shareholders” and that the board “owns essentially no shares” in the firm.