Shares in Twitter rose by more than 5% in pre-market trade on Monday morning as reports that the company is nearing a takeover deal with Elon Musk circulated online. Earlier this month, Musk offered to buy Twitter for $43 billion, and while the social media giant initially refused, it seems they had time to mull it over and decided to go for it, according to Bloomberg.
BREAKING: Twitter is in the final stretch of negotiations about a sale to Elon Musk and could reach a deal as soon as Monday https://t.co/pQOUoM3zFj pic.twitter.com/WEcIvE46Uz
— Bloomberg (@business) April 25, 2022
- It’s believed a deal could be reached as soon as today. If Musk’s $43 billion buyout is accepted and completed, it would potentially be one of the largest ever leveraged buyouts of a listed company, sources say. Should negotiations go smoothly, it’s believed that an agreement could be finalized by the close of play on Monday, April 25.
- Musk is doing his part to move the deal along. According to sources who asked to remain unnamed due to the sensitivity of the matter, Musk is said to be “lining up partners for the acquisition and continues to speak to potential co-investors,” Bloomberg reports. Discussions and arrangements were said to be continuing into the early hours of Monday, leading Twitter shares to jump nearly 6.2% of market value.
- Twitter would be silly not to accept the offer. That’s what many people think, given that Musk was offering $54.20 per share, well over the market value. Even with the increase on Monday morning, shares only reached a high of $51.98. It’s likely that Twitter execs would be happy to offload the company for such a hefty profit, but the deal is still said to be “fluid” and could go either way.
So far, neither Twitter nor Musk has replied to calls for comment. More will be announced as information becomes available.
