Twitter is seemingly happy to accept the $45 billion offer from Elon Musk to purchase the company which means Musk will pay $54.20 per share of the social media platform.
The sale of Twitter Inc. for $45 billion to Elon Musk will make it one of the largest-ever leveraged buyouts of a listed company. The deal was believed to be in the final stretch already, with industry insiders stating that the final agreement could come as early as Monday. However, it seems it could come even earlier than that since Twitter is happy to accept the $54.20 price per share.
According to Bloomberg, the social media company and Tesla founder Elon Musk continued negotiations “into the early hours on Monday” where share prices jumped as high as 6.2% in the pre-market U.S. trade. The share price jumped to $51.98 at its highest making Musk’s offer of $54.20 is just $2.22 more per share than the trade price, giving Twitter an extra incentive to close the deal.
Musk is also reportedly lining up partners for the acquisition which bolstered the share price as well, and supposedly Musk is still talking to potential co-investors as well.
However it wasn’t until the billionaire revealed his financing plan for the social media company which included backing from Morgan Stanley as well as other firms. It seems that this news perked Twitter’s ears’ up as the social media giant became more enthusiastic to hear out Musk’s unsolicited sale offer. Combining this with the spike in share prices seems like a no-brainer for Twitter.
Nothing is concrete just yet and the deal could still fall through but if negotiations are successful, it seems the two parties could come to an agreement during this week. Representatives for both Musk and Twitter have yet to make any official comments on the matter.