According to multiple online sources, Twitter confirmed that it planned to accept Elon Musk’s offer and was set to finalize the deal on Monday.
The world’s richest man seemed to allude to it in a post, speaking as if the deal were already finalized:
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
Musk said in a joint statement with Twitter that he wants to make the service “better than ever” with new features, such as getting rid of automated “spam bots” and making its algorithms open to the public to increase trust, reported the AP.
“Free speech is the bedrock of a functioning democracy, and Twitter is the digital town square where matters vital to the future of humanity are debated,” he said.
Original story below:
(Joshua Paladino, Headline USA) Twitter’s board said that it is reconsidering Tesla CEO Elon Musk‘s offer to buy the company for about $43 billion or $54.20 per share, and an announcement could come as soon as Monday, CNBC reported.
Since the news broke, Twitter’s stock price has risen about 4 percent, or $2 a share, to $50.75
The board initially shrugged off Musk’s offer because they did not think that he could get the cash, despite his net worth of about $270 billion. But when Musk stated last week that he had acquired $46.5 billion in debt and equity financing, the board began to reconsider the offer at a meeting on Sunday.
Twitter’s board adopted a so-called poison-pill defense to prevent Musk from acquiring enough shares to take the company private.
The strategy would have let Twitter sell more shares at a discounted rate so that Musk could not become the majority shareholder, but it would have hurt Twitter’s stock price and undermined confidence among shareholders.
Wed analyst Dan Ives called the negotiations “the beginning of the end for Twitter as a public company with Musk likely now on a path to acquire the company unless a second bidder comes into the mix.”
Twitter could accept another purchase offer if the deal with Musk falls through, but Musk will not allow the board to shop for other buyers if it proceeds with his deal.
CNBC Host Jim Cramer said he thinks “they almost have to” accept Musk’s offer.
Twitter will announce its quarterly earnings on April 28, and analysts have stated that the numbers will not look good for the board if it does not sell.
“Locking a deal up today or tomorrow may sound pretty appealing for someone who knows they are in possession of bad news,” Gordon Haskett said in a Monday note.
Before proposing to buy the company, Musk bought a 9 percent stake in Twitter, making him the largest single shareholder.
Twitter’s board offered him a seat on the board, but he turned it down because he did not think that he could make the needed changes without taking sole ownership of the company.