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Twitter Inc is all set for a deal to sell itself to Elon Musk for $54.20 per share in cash – the amount that the Tesla CEO originally offered to the social media giant and called his “best and final”, people familiar with the matter said, news agency reported Reuters.
The report, citing sources, added that Twitter may announce the 43 billion in cash deal later on Monday once its board has met to recommend the transaction to Twitter shareholders.
Twitter and Musk did not immediately comment on the development.
The world’s richest person has been negotiating to buy Twitter in a personal capacity.
Twitter shares were up 4.5 per cent in pre-market trading in New York on Monday at $51.15, Reuters added.
Musk has said Twitter needs to be taken private to grow and become a genuine platform for free speech.
Musk has been meeting with Twitter shareholders in the last few days, seeking support for his bid.
According to Reuters, several Twitter shareholders had reached out to the company, urging it not to let the opportunity for a deal slip away.
Twitter’s board has decided to engage with Musk to gather more information on his ability to complete the deal despite his “best and final” offer, and potentially get better terms, the sources added.
The company’s long-term shareholders, who together with index funds hold the biggest chunk of Twitter shares, have higher price expectations and are also more inclined to give Parag Agrawal, who recently became Twitter’s chief executive, more time to boost the value of the company’s stock, the report stated.
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