Twitter is on the verge of accepting a $43bn offer for the acquisition of the company by Tesla CEO, Elon Musk.
The offer, which Musk describes as his ‘best’ and ‘final’ offer is being strongly considered by the Twitter hierarchy, according to Reuters.
A $54.20 per share deal may be agreed later on Monday with the Twitter board expected to recommend the transaction to Twitter shareholders.
There are also possibilities that the deal may still fall through in the last minute, with a potential change of mind not ruled out.
Musk was in the news some days ago for making a bold attempt to take over control of Twitter, and grant its users more freedom of speech.
In a move that has courted mixed reactions, Twitter board members accused the world’s richest man of ulterior motives when he acquired 9.3% of the company’s ownership but refused to sit on the board.
Should another offer come in and is deemed preferable by Twitter, a break up fee is not out of question according to Reuters, but currently, the social media company is yet to secure a “go-shop” agreement which would allow it look for other bids when it signs an agreement.
After suffering a dip following Twitter’s earlier announcement that it won’t be selling to Musk, the company’s shares have gone up 4.5% to $51.5 per share as the market reacts to the news of a potential takeover.
Musk had unveiled a financial package to fund the acquisition revealing he secured more than $46bn in financing, and is believed to have impressed shareholders and board members. Some shareholders have asked the company to accept the offer as it’s a big opportunity.
Twitter CEO Parag Agrawal is under pressure in the face Musk’s offer despite being on track to meet the company’s projection for 2023. Musk’s approach has left many wondering what next as he’s defiant on maintaining the bid.