Well, that escalated quickly. Elon Musk and Twitter’s board certainly had an eventful weekend and it looks like a possible deal between the two sides could be announced as soon as Monday.
On Sunday, negotiations began between Musk and Twitter regarding his offer to buy the company and take it private. And according to Reuters, Twitter is expected to accept Musk’s initial offer of $43 billion. This sudden turn of events appears to be due in large part to Musk revealing his financing plans last week, which then resulted in Twitter’s shareholders asking “the company not to let the opportunity for a deal to slip away.”
Reuters also reported the following details about the possible deal reached between Musk and Twitter:
- The deal amounts to $54.20 per share.
- The deal still needs to be recommended to shareholders by the Twitter’s board, and Reuters’ unnamed sources said that it may still “collapse at the last minute.”
- Its current iteration does not have a provision that allows Twitter to shop for other bids after signing this deal. But that doesn’t mean it couldn’t accept an offer from someone else. Twitter can do that, but it would have to pay a “break-up fee” to Musk.
All of this is occurring not long after Twitter adopted a poison pill strategy in response to (and ostensibly to defend against) the offer they’re now expected to accept on Monday. At the time of this writing Twitter is currently at $50.67 per share, according to MarketWatch.
This story is still developing and we will update it as more details emerge.