Twitter Inc is supposed to have agreed to be sold to Elon Musk for around $43-46 billion in cash, the price the chief executive of Tesla Inc has called his “best and final” offer for the social media company, people familiar with the matter said. Twitter may announce the $54.20 per share deal later on Monday (Local time) once its board has met to recommend the transaction to Twitter shareholders, the sources said. It is always possible that the deal collapses at the last minute, the sources added. Musk, the world’s richest person according to a tally by Forbes, is negotiating to buy Twitter in a personal capacity and Tesla is not involved in the deal.
According to TechCrunch, multiple news outlets have reported that Twitter’s board has actually considered Musk’s funded offer over the weekend, with the corporate governing body’s attitude towards the offer changing following Musk’s outlining of his plan to source the funds to make real his US$46.5 billion offer to buy the company. After initially meeting on Sunday, Twitter’s board entered into negotiations with Musk on Monday morning in order to hammer out additional details. Though reports stress that the deal has not yet been finalised and can still fall out however it’s kind of amazing that it’s even gotten this far.
The tech billionaire’s bid was initially seen by critics as undervaluing the company significantly despite it representing a premium on the current Twitter stock price.
Further, Twitter’s board had even instituted a ‘poison pill’ policy to try to block Musk from acquiring a much more significant ownership position in the company, as per TechCrunch.