Twitter is close to selling $ 43.4 billion to social media company Elon Musk, which could be one of the biggest buyouts in history, people familiar with the matter said.
The Twitter board was still meeting early Monday to finalize the terms of the agreement with Musk, an informed source said, adding that the deal could be reached the same day.
The San Francisco-based company was forced to sit at the negotiating table with Musk on Sunday, days after Tesla’s boss provided funding for transactions that few on Wall Street believed could be made.
Twitter’s decision to start talks marks a significant change from the social media company, which previously released a poison pill to stop Musk from taking over the group.
Twitter did not immediately respond to a request for comment on Monday.
Musk made a hostile offer of $ 54.20 less than two weeks ago, but shares of Twitter traded below that level, suggesting that Wall Street doubts the deal will materialize.
However, after reports over the weekend that the Twitter board was already taking the offer more seriously, shares rose 5% to $ 51.47 in stock trading on Monday morning in New York.
Musk said his invasion of Twitter was motivated mainly by a review of his policies to moderate content and promote what he described as freedom of speech on the platform. Twitter has intensified its response to abuse and extremist activity in recent years, including by shutting down the account of former US President Donald Trump in January 2021.
On Friday, Musk unveiled a $ 46.5 billion financial package, which includes $ 25.5 billion in debt from a group of banks led by Morgan Stanley, his financial adviser, and $ 21 billion in new capital. The debt component includes a $ 12.5 billion margin loan against its shares in Tesla.
If Musk’s bid is successful, the South African-born entrepreneur will be on the hook for $ 33.5 billion in the financial package, although he could reduce his exposure by attracting co-investors to fund the deal.
Add Comment