UPDATE APRIL 25, 2022 AT 4:15 PM: Twitter said it has agreed to sell itself to Elon Musk, who will take the company private in a deal valued at around $44 billion.
SAN FRANCISCO, CA – After Elon Musk submitted a detailed financing plan indicating he had secured funding from multiple sources to back up his $43 billion offer, reports indicate that Twitter is now seriously mulling over the Tesla CEO’s buy-out attempt and may actually accept it as early as Monday.
The Twitter Board of Directors is said to be meeting on Monday and will likely recommend the company be sold to Musk to their shareholders; however, details are still in flux and the deal could still not take place, although currently the outlook appears to be positive.
Musk noted that if his offer is accepted, he would take the publicly-traded company private and make it a “platform for free speech” after previously accusing the microblogging site of censorship, particularly of conservative viewpoints.
The news caused Twitter’s stock to jump by over five percent in premarket trading on Monday.
Currently, while Musk is not allowing the social media platform to take bids from other parties if the deal is signed, Twitter may still be able to do so if they pay a “break-up” fee to the South African business tycoon.
Reports indicate that Musk gave a presentation to several Twitter shareholders on his plans for the buy-out – his offer comes to $54.20 per share, which is his “best and final” offer – which some say impressed those he met with, potentially turning the tide on the decision to allow him to acquire the company.
Talks are still ongoing with Musk and Twitter’s Board of Directors.
The Tesla CEO made headlines in early April when he purchased a 9.2 percent stake in Twitter for $2.89 billion. However, he rejected a subsequent offer to join the company’s board of directors that would have placed a cap on his ability to purchase additional shares of the company.