Twitter, a microblogging company, may accept the deal to sell itself to Elon Musk, The New York Times is reporting.
The newspaper quoted two people familiar with the matter as saying that the two sides were discussing details, including a timeline to close any potential deal and any fees that would be paid if an agreement were signed and then fell apart.
The people who spoke to the newspaper on condition of anonymity said Twitter’s board was negotiating with Musk, the billionaire founder of Tesla Inc., into the early hours of Monday over his unsolicited bid to buy the company, after he disclosed that he has secured $46.5 billion in financing.
The sources said the discussions followed a Twitter board meeting on Sunday to discuss Musk’s offer.
They said obtaining commitments for the financing was a turning point for how the board viewed Musk’s bid of $54.20 a share, enabling the company’s 11 board members to seriously consider his offer.
The sources stated that the situation involving Twitter and Musk remained fluid and fast-moving.
They added that an agreement is not yet final and what had initially seemed to be a highly improbable deal appeared to be nearing an endgame.
Musk is currently Twitter’s largest individual shareholder after he acquired a 9.2 per cent stake in the company.
Following his $43 billion offer to buy the company, Twitter’s board of directors enacted a limited duration shareholder rights plan, also called a “poison pill” to fend off a potential hostile takeover.
Twitter subsequently announced that Musk would join its board of directors, but the billionaire rejected the seat.
The billionaire had said that if he acquires Twitter, he would cut the salaries of its board of directors to zero.
Source: Top Stories
