Expectations that Twitter Inc. might conclude a deal to sell itself to Elon Musk as soon as Monday boosted the stock. During late morning trade, shares of the social networking business rose 3.8 percent to $50.80. The stock of Twitter has been swinging dramatically this month as investors have followed Elon Musk’s offer to purchase the San Francisco-based firm.
According to reports published on April 25, social networking behemoth Twitter is in the closing stages of talks to sell the company to Tesla creator Elon Musk, and a deal may be reached as early as today. Musk, who stated earlier this month that he is one of Twitter’s top shareholders, has made a $43 billion bid to acquire the microblogging service.
According to reports, Twitter is “ready to accept the offer,” and a deal might be struck as soon as today. According to Bloomberg, the business is “trying to iron out details of a sale,” and the purchase could be finalized “as soon as Monday,” according to a source familiar with the situation.
Moneycontrol was unable to independently verify the trend. The allegations have elicited no response from Musk or Twitter. Musk claimed in a regulatory filing on April 14 that he has offered to acquire 100% ownership in Twitter for $54.20 per share, but that the social media company must be converted “privately.”
“I invested in Twitter because I think it has the potential to be a global forum for free expression, and I believe free speech is a social requirement for a functioning democracy,” Musk said in a letter to Twitter chairman Bret Taylor that was also included in the exchange filing. Musk also argued that the corporation could “neither prosper nor serve” the goal of free speech in its present form.
He had said, “As a consequence, I am proposing to acquire 100% of Twitter for $54.20 per share in cash, a 54 percent premium over the day before I started investing in Twitter and a 38 percent premium over the day before my investment was publicly publicized.” Musk further hinted that if the purchase does not go through, he would sell his Twitter investment. “If my offer is not accepted, I will have to reevaluate my position as a shareholder.”
Musk told the stock markets on April 2 that he has a 9.2 percent interest in the firm, making him the company’s biggest individual stakeholder. Following that, Twitter’s CEO, Parag Agrawal, asked him to join the company’s board of directors. Musk, on the other hand, declined to join the board.
Following Musk’s purchase proposal, the business used a poison pill plan, which enables current shareholders to raise their ownership at a reduced price in order to avoid a hostile takeover. Musk, on the other hand, countered by threatening to launch a tender offer to legally record shareholder approval for his deal.
According to a Reuters article on April 24, Twitter’s board of directors chose to talk with Musk over his $43 billion offer amid tremendous pressure from shareholders, who pushed the firm not to let the prospective purchase slip away, according to sources.
According to the sources, Musk’s insistence that his offer for Twitter is his “best and last” has become a stumbling block in the transaction discussions.
According to the Reuters story, active long-term owners, who combined with index funds own the majority of the Twitter stock, have greater price expectations, with some in the $60s per share, according to people familiar with the situation. They’re also more likely to give Parag Agrawal, who took over as Twitter’s CEO in November, more time to improve the stock’s value, according to the sources. On April 14, Saudi Arabia’s Prince Alwaleed bin Talal, a Twitter stakeholder, stated, “I don’t feel that Elon Musk’s suggested offer ($54.20 per share) comes near to the fundamental worth of Twitter given its growth possibilities.”