By Mukwuzi Joseph
Twitter Inc is reportedly set to sell the company to Elon Musk for around $43 billion in cash, which the chief executive of Tesla Inc has called his “best and final” offer for the social media company.
Twitter may announce the $54.20-per-share deal later on Monday, April 25, once its board has met to recommend the transaction to Twitter shareholders, the sources told Reuters.
“It is always possible that the deal collapses at the last minute, the sources added.
Tesla CEO, Musk, who is the world’s richest person is negotiating to buy Twitter in a personal capacity and his company 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.
Twitter shares were up 4.5% in pre-market trading in New York on Monday, April 25, at $51.15.
Musk has said Twitter needs to be made private to grow and become a genuine platform for free speech.
If successful, the deal would come just four days after Musk unveiled a financing package to back the acquisition.