Yesterday we reported that Twitter was suddenly reconsidering Elon Musk’s offer to buy the company in light of the $46.5 billion in financing he had secured.
Well apparently the negotiations are escalating quickly because this morning it’s being widely reported that a deal is so close it could happen as soon as today.
From the WSJ:
Twitter Inc. is in advanced discussions to sell itself to Elon Musk and could finalize a deal Monday, people familiar with the matter said, a dramatic turn of events just 11 days after the billionaire unveiled his $43 billion bid for the social-media company.
The two sides worked through the night to hash out a deal that would be valued at $54.20 a share, the people said. There are no guarantees they will reach one.
Twitter had been expected to rebuff the offer, which Mr. Musk made April 14 without saying how he would pay for it, and put in place a so-called poison pill to block him from increasing his stake. But after the Tesla Inc. chief disclosed that he has $46.5 billion in financing and the stock market swooned, Twitter changed its posture and opened the door to negotiations.
The Wall Street Journal reported Sunday that Twitter had warmed up to Mr. Musk’s proposal and could reach a deal this week.
Twitter shares rose more than 5% premarket Monday.
This is amazing news and almost sounds too good to be true. After all, Twitter’s board of directors voted unanimously to implement the ‘poison pill’ strategy just to keep Musk from buying it.
If this is as good as it sounds, then it is clearly a huge victory for shareholders. Musk had criticized Twitter’s board for breaking their fiduciary duty to shareholders with the ‘poison pill’ strategy and I’m guessing a large portion of shareholders agreed.
Should this purchase deal be finalized today, we’ll bring you that news as soon as we get it.
As a side note, can you image how triggered the leftists are at the company right now? They must be freaking out right now, in full panic mode…