Sources reveal that Twitter may announce a $43 billion deal after the board meeting to recommend the transaction to shareholders. Here’s all you need to know.
Here’s all about Musk’s ‘best and final offer’
Twitter is getting closer to a deal to sell the platform to Elon Musk for $54.20 per share in cash. The price was originally offered by Elon Musk as his best and final offer. Later on Monday, the platform may announce the $43 billion deal after meeting with the board to recommend a transaction to its shareholders. However, sources also mentioned that a last-minute collapse of the deal is always a possibility. The sources prefer anonymity owing to the confidential nature of the matter.
Additionally, according to the sources, Twitter has not been successful in securing a ‘go-shop’ provision under the agreement. This will not allow soliciting of other bids from other potential acquirers after the deal is signed. Moreover, they reveal that the platform is ready for accepting offers from another party by paying a break-up fee to Musk. Both Elon Musk and Twitter have not commented on the matter.
Musk to take Twitter private?
Musk believes that taking the company private is important for it to grow. Additionally, he believes that this will help in making it a genuine platform for free speech. The deal is going to follow Musk’s new financial package for backing the acquisition. This also played an important role in Twitter’s board taking the deal seriously. According to a Reuters report, several shareholders asked the firm not to let this deal slip.
The sale is going to represent an admission by Parag Agrawal, the new Twitter CEO that the company is not more profitable despite staying on track towards its 2023 goals. On Monday, standing at $51.15 per share, Twitter shares were up by 4.5 percent, pre-treading in New York. Currently, Twitter’s shares are trading higher than Musk’s November offer.