Twitter could agree to sell to Elon Musk today
Twitter Inc could agree to sell the firm to Elon Musk for around $43 billion in cash, after initially trying to reject the billionaire's bid.
According to well-informed people, Twitter Inc could agree to sell the firm to Elon Musk for around $43 billion in cash, after initially trying to reject the billionaire's bid.
This price is his "best and final" offer for the social media firm, according to Tesla Inc's chief executive.
Read more: Twitter's 'poison pill' renders Musk takeover nearly impossible
Twitter may declare the $54.20-per-share deal later today, Monday, once the board meets to advise on the transaction to Twitter shareholders, as per the sources, but there is always a chance that the deal fails at the last minute, they added; Twitter is still allowed to accept offers from other parties by paying the billionaire a break-up fee.
According to sources familiar with the issue, #Twitter is in talks to sell itself to #ElonMusk and might seal a deal as early as this week, a remarkable turn of events just 10 days after the billionaire launched his $43 billion bid for the social-media company. pic.twitter.com/l0cCX8SRht— Al Mayadeen English (@MayadeenEnglish) April 25, 2022
Musk, the world's wealthiest person according to a tally by Forbes, is negotiating to buy the company in a personal capacity, the sources that requested anonymity for the matter's confidentiality, added, as Tesla is not involved in the deal.
According to CNBC, the Twitter board changed its position toward Musk's offer after he made a securities filing on April 21 in which he said he secured the financial commitments of $46.5 bln to fund his offer.
Read more: Elon Musk no longer joining Twitter board: CEO
While Musk said Twitter needs to be taken private to become a real platform for free speech, analysts cited concerns about his way of managing the platform if he becomes the owner. They explained that while he could change it to become a free-speech platform, Musk could also use his power to silence criticism against decisions he makes in his other businesses.
If the sale is to be successful, it would be interpreted as an admission by Twitter that Parag Agrawal, who has been the firm's CEO only since November, is not being successful in making Twitter more profitable, despite being on track to meet the company's ambitious financial goals set for next year. The company's shares were trading higher than Elon Musk's offer price as recently as November.
Musk's negotiating strategies are similar to another billionaire's, Warren Buffett. Musk did not give any details when he first declared his offer, which makes the market skeptical about its prospects.