Twitter is likely to announce a $ 54.20 per share transaction on Monday after its board meeting, which would recommend the transaction to Twitter shareholders, sources said. According to them, it is possible that the business will collapse at the last minute.
According to Reuters, Musk, the richest person in the world, according to a Forbes report, is negotiating to buy Twitter in person, as Tesla is not involved in the agreement.
Twitter has so far been unable to provide a “go-shop” provision based on its agreement with Musk, which would allow it to request further offers once the agreement is signed, sources said. However, Twitter would be allowed to accept an offer from elsewhere by paying Musk a waiver fee, the sources added.
Sources demanded that their identities not be revealed because the issue is confidential. Twitter and Musk did not immediately respond to requests for comment.
Twitter shares rose 4.5% in pre-market transactions in New York on Monday to $ 51.15.
Musk said Twitter needs to be 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 support the acquisition. This prompted Twitter’s board to take the business more seriously and many shareholders urged the company not to miss the opportunity of a transaction, Reuters reported on Sunday.
The sale would be a recognition by Twitter that its new CEO, Parag Agrawal, who took over in November, is not making enough effort to make the company more profitable, despite the fact that it is on track to achieve the company’s ambitious financial goals. and set them for 2023. Twitter shares traded higher than Musk’s bid price recently in November.
Musk’s bargaining tactic – to make an offer and stay with it – is like another billionaire, Warren Buffett, negotiating acquisitions. Musk did not provide funding details when he first revealed his offer for Twitter, making the market skeptical of its prospects.
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