Twitter jumps 5% on reports the social media giant could strike a deal with Elon Musk as early as Monday
“We believe climate denial should not be monetized on Twitter,” the company said in a blog post.
- Twitter rose 5% premarket on Monday after Bloomberg reported it may soon accept Elon Musk’s takeover offer.
- The social media company and Musk are working out details of the transaction and could reach an agreement as early as Monday, Bloomberg said.
- Tesla’s billionaire CEO said last week he had secured the funding to provide $46.5 billion (R728 billion) for a Twitter takeover.
- For more stories, go to www.BusinessInsider.co.za.
Twitter stock rose 5% in Monday’s premarket session after the social media company announced it had reached a deal to sell it to billionaire Elon Musk.
The microblogging company is working on the terms of a deal with Musk and could reach an agreement as early as Monday if negotiations go well, Bloomberg said, citing a person with knowledge of the matter.
Reuters reported that Twitter was close to accepting and announcing the deal on Monday, after its board of directors met to recommend the transaction to shareholders.
Musk said on April 14 that he had offered to buy the company for $43 billion (R658 billion), or $54.20 (R850) per share, to take it private. Twitter resisted this by taking a “poison pill approach” that would make its takeover bid harder and more expensive.
A poison pill shareholder rights plan makes a company a less attractive acquisition target by diluting the value of its shares. But Musk was not put off by this tactic.
The Tesla and SpaceX CEO has now beefed up his offer and he confirmed in a regulatory filing last week that he had secured multiple funding commitments to provide around $46.5 billion (R728 billion) for a takeover. control of Twitter.
Twitter’s 11-member board was negotiating with Musk over his offer to buy the company and take it private until the early hours of Monday morning, The New York Times reported.
Meanwhile, the Wall Street Journal reported that Twitter officials met on Sunday to re-examine Musk’s offer and reconsider his offer after initially trying to reject his bid.
Musk talked about social media platforms seem to stifle free speech in his posts on Twitter. But he got in trouble with the Securities and Exchange Commission over his tweets, and he settled 2018 SEC accusations that he misled investors by tweeting that he was “considering taking Tesla 420 private.” $” (R6,600) per share.
Twitter and Musk did not immediately respond to Insider’s requests for comment.
A deal is not certain at this stage and the talks could still fall apart.
Shares of Twitter were up 5.4% in premarket trading on Monday at $51.56 (R808) per share, and are up 13% so far this year.