homebusiness NewsTwitter board may accept Elon Musk’s offer today: Report

Twitter board may accept Elon Musk’s offer today: Report

Twitter board may accept Elon Musk’s offer today: Report
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By CNBCTV18.com Apr 25, 2022 10:08:44 PM IST (Updated)

Twitter may finalise Elon Musk's $43-billion Elon Musk deal and announce it 'as early as on April 25,' once its board meets to recommend the transaction to Twitter shareholders, reports suggest.

Micro blogging platform Twitter is about to complete the negotiations and seal the deal with Elon Musk, according to reports. The deal is likely to be finalised “as early as on April 25” if the negotiations go smoothly, Bloomberg reported, quoting a person with knowledge of the matter. Twitter is in the final stretch of negotiations and it’s working out the terms of transaction, the report added.

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Twitter Inc’s board took up the final negotiations with Elon Musk regarding his “best and final offer” of buying the company for $43 billion, on April 24. This was supposedly the final stretch of negotiations about a sale to the Tesla CEO.

Musk had been meeting with Twitter shareholders in the last few days, seeking support for his bid, according to a Reuters report. Musk wooed shareholders with his detailed financing plan for his bid, on April 21, and urged the company to not let the opportunity for a deal slip away.

Where will Musk's funds come from?

He explained how he had put together financing from the investment bank Morgan Stanley and a group of other lenders, who are offering $13 billion in debt financing, and another $12.5 billion in loans against Musk’s stock in his car company Tesla. He was also expected to add about $21 billion more in equity financing.

According to a Wall Street Journal report, Musk already has $46.5 billion in funding and is exploring a tender offer to acquire shares of Twitter directly from shareholders. Several Twitter shareholders reached out to the company after this bid was made by Musk on April 21.

Twitter failed to dodge Musk bouncer

Earlier, Twitter announced that it had adopted a poison pill strategy to stop Musk from forcibly acquiring the company. However, now it seems Musk is likely to circumvent it and acquire Twitter anyway.

As per a Reuters report, Twitter has not been able to secure a 'go-shop' provision under its agreement with Musk.  This provision would allow it to solicit other bids from potential bidders once the deal is signed. However, in the current scenario, Twitter would be allowed to accept an offer from another bidder by paying Musk a break-up fee, the report added.

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