scorecardresearch
Follow Us:
Friday, August 12, 2022

Twitter set to accept Musk’s $43 bn offer: Report

Twitter is poised to agree a sale to Elon Musk for around $43 billion in cash, the price the chief executive of Tesla Inc has called his "best and final" offer for the social media company,

By: Reuters |
April 25, 2022 6:02:13 pm
Twitter, Twitter Elon Musk, Twitter Elon Musk deal, Twitter Elon Musk acquisitionTwitter is likely to accept Elon Musk's proposal, says a Reuters report. (Image credit: Reuters)

Twitter Inc is poised to agree a sale to Elon Musk for around $43 billion in cash, the price the chief executive of Tesla Inc has called his “best and final” offer for the social media company, people familiar with the matter said.

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. It is always possible that the deal collapses at the last minute, the sources added.

Musk, the world’s richest person according to a tally by Forbes, is negotiating to buy Twitter in a personal capacity and Tesla is not involved in the deal.Twitter 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 sources requested anonymity because the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.

Subscriber Only Stories
UPSC Key-August 10, 11, and August 12, 2022: Why you should read ‘Euthana...Premium
Laal Singh Chaddha: A comfortable film for the obedient IndianPremium
What is border post 918 which provides shade to both India and Pakistan?Premium
Ravi Shankar Prasad: ‘(Nitish) is nothing on his own… He may be honest bu...Premium

Twitter shares were up 4.5% in pre-market trading in New York on Monday at $51.15.Musk has said Twitter needs to be taken private to grow and become a genuine platform for free speech.The deal would come just four days after Musk unveiled a financing package to back the acquisition.

This led Twitter’s board to take the deal more seriously and many shareholders to ask the company not to let the opportunity for a deal to slip away, Reuters reported on Sunday.The sale would represent an admission by Twitter that its new chief executive Parag Agrawal, who took the helm in November, 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’s negotiating tactics – making one offer and sticking with it – resembles how another billionaire, Warren Buffett, negotiates acquisitions. Musk did not provide any financing details when he first disclosed his offer for Twitter, making the market skeptical about its prospects.

📣 Join our Telegram channel (The Indian Express) for the latest news and updates

For all the latest Technology News, download Indian Express App.

  • Newsguard
  • The Indian Express website has been rated GREEN for its credibility and trustworthiness by Newsguard, a global service that rates news sources for their journalistic standards.
  • Newsguard
First published on: 25-04-2022 at 06:02:13 pm

Featured Stories

Advertisement
Advertisement
Advertisement
Advertisement