Twitter’s board of directors is reportedly on the cusp of accepting Elon Musk’s original offer to buy all outstanding shares of the company for $54.20 per share – around $43 billion – and take the company private.
Musk opened his negotiations by stating that it was his “best and final offer,” though Twitter remained silent on the decision except for a “poison pill” response that was designed to lower its share price and buy the company time.
Now, according to Reuters, “Twitter may announce the $54.20-per-share deal later on Monday once its board has met” to recommend the action to shareholders, quoting “sources” familiar with the board’s decisionmaking. Reuters’ sources also warn “it is always possible that the deal collapses at the last minute.”
Apparently Musk has stayed true to his promise not to negotiate, as Reuters notes “Twitter has not been able to secure” a “go-shop” provision that would allow it to seek other bids after accepting Musk’s offer.
The development comes after Musk secured $45 billion in funding, and was rumored to be planning a hostile tender offer directly to Twitter’s shareholders. That offer was rumored to launch this Friday. Many had argued that Musk would not be able to secure the funding.
Previously, Musk said that if the deal goes through he will slash the Twitter board’s salaries to $0, which many suggest indicates he intends to fire Twitter CEO Parag Agrawal and the other Twitter board members who stymied his progress.
Musk describes himself as a “free speech absolutist” and said after buying around 9% of the company that he did not have faith in its board. He said it must be taken private to “unlock its potential.”
Within hours of Musk’s offer, Saudi Arabian Prince Alwaleed bin Talal, who owns about 5% of Twitter, said that Musk’s offer was not high enough and indicated he would not sell. Musk responded by confronting the prince on Twitter, and began exploring the tender offer plan while pushing for a shareholder vote.
Many on the right have celebrated Musk’s decision to buy Twitter, hoping that banned Twitter users like 45th President Donald Trump may be able to return. Many on the left, meanwhile, insist Musk’s offer represents a threat to democracy.
