Breaking News

Twitter set to agree Musk's offer.

 Twitter is claimed to be finalizing an agreement to sell itself to Elon Musk, according to The New York Times and other sites, 11 days after the Tesla and SpaceX CEO surprised the industry by offering to purchase the firm in a transaction valuing it at more than $41 billion. Tesla CEO Elon Musk's "best and last" bid for the social networking business, according to sources familiar with the issue.

According to sources, Twitter may announce the $54.20-per-share agreement later on Monday when its board of directors meets to endorse the transaction to Twitter shareholders. However, the deal might yet fall apart at the last minute.

Mr Musk, the world's richest person, according to Forbes, is negotiating to acquire Twitter on his own behalf, and Tesla is not participating in the transaction. 

According to the sources, Twitter has not been able to acquire a "go-shop" option in its agreement with Mr Musk that would allow it to solicit alternative bids once the contract is completed.

Musk appeared to hint at the completion of a transaction on Twitter on Monday when he tweeted, "I hope that even my worst critics remain on Twitter, because that is what free speech means."

In pre-market trading in New York on Monday, Twitter shares were up 4.5 percent to $51.15. Mr. Musk has stated that in order for Twitter to thrive and become a true forum for free speech, it must be turned private.

Mr Musk announced a finance package to support the acquisition just four days ago, and the deal would close just four days later. As a result, Twitter's board of directors began to take the acquisition more seriously, and many shareholders urged the business not to let the chance for a purchase pass them by.

The sale would be an admission by Twitter that its new CEO, Parag Agrawal, who took over in November, is not making enough progress in turning the firm profitable, despite the fact that the company is on schedule to reach its lofty financial targets established for 2023.

As recently as November, Twitter's stock was trading higher than Mr Musk's bid price. Mr Musk's bargaining strategy, which entails making a single offer and sticking to it, is similar to that of another billionaire, Warren Buffett, when it comes to acquisitions. When Mr Musk originally announced his bid for Twitter, he did not share any financial information, leaving the market skeptical of its possibilities.

In the days after Musk's takeover proposal, speculation circulated over whether he would be able to fund his purchase of Twitter, especially after he acknowledged in an interview the day of his offer, "I'm not sure I'll actually be able to acquire [Twitter]."

Elon Musk (50) has stated his dissatisfaction with Twitter as a social media platform. He has stated that he intends to "convert" the firm into a "platform for free expression throughout the world," which will necessitate significant changes to the company's product and rules.

Mr Musk has attempted to negotiate with Twitter through the site itself, saying in many tweets that he may make a "tender offer" to the company's shareholders. A tender offer is a hostile maneuver in which an outside entity asks shareholders to sell their shares directly to them, bypassing the company's board of directors.

He's also acted strangely on the site, raising questions about how he'd run the business if he were in control.

Mr Musk went after billionaire Bill Gates on Saturday because Gates had taken a "short" position on Tesla stock, which indicated he was wagering the car maker's value would decline. Mr Musk tweeted on Sunday that he was "moving on" from his mockery of Mr Gates.

Despite this, Mr Musk maintains cordial relations with a number of high-ranking Twitter executives. Mr Musk and Jack Dorsey, the company's co-founder and a board member, exchanged cordial tweets over the weekend.

Mr. Dorsey stepped down as Twitter's CEO in November and will shortly leave the company's board of directors. Both guys have similar perspectives on cryptocurrency and the promotion of increased internet free expression.

Mr. Dorsey wrote, “I’m really happy Elon is joining the Twitter board! He cares deeply about our world and Twitter’s role in it.” when Mr Musk flirted with joining the company's board earlier this month.

Mr. Dorsey's financial services startup, Block, announced on Friday that he had altered his position from chief executive to "Block Head." Musk appears to agree with this change. Mr Musk tweeted to Dorsey on Saturday, "Your new title at Block is fire," with two flame emoji to indicate his support. Mr Musk's title at Tesla was changed from chief executive to technoking last year. — New York Times, Reuters

No comments