It appears Twitter is about to accept Elon Musk‘s $43 billion offer to purchase the social media platform. Reuters reports that Twitter may announce the $54.20-per-share deal later on Monday once its board has met to recommend the transaction to Twitter shareholders, the sources said, adding it was still possible the deal could collapse at the last minute.
Musk, the world’s richest person according to Forbes, is negotiating to buy the social media platform in a personal capacity and Tesla is not involved in the deal.
The social media has not been able to secure so far a ‘go-shop‘ provision under its agreement with Musk that would allow it to solicit other bids once the deal is signed, the sources said. Still, Twitter would be allowed to accept an offer from another party by paying Musk a break-up fee, the sources added.
The social media shares were up 4.5% in pre-market trading in New York at $51.15.
The sale would represent an admission by the social media that Agrawal is not making enough traction in making the company more profitable, despite being on track to meet ambitious financial goals the company set for 2023. Twitter’s shares were trading higher than Musk’s offer price as recently as November.
Musk unveiled his intention to buy Twitter on April 14 and take it private via a financing package comprised of equity and debt. Wall Street’s biggest lenders, except those advising Twitter, have all committed to providing debt financing.
