According to reports, Twitter is on track to accept Elon Musk's bid to purchase the social media platform for $54.20 per share, valuing the firm at over $43 billion. According to Bloomberg and Reuters, a deal might be revealed as soon as Monday.
According to The Wall Street Journal, the two parties met on Sunday to discuss Musk's proposal. The deal's terms were apparently still being worked out overnight into Monday am. According to Reuters, the agreement might possibly fall apart at the last minute.
Twitter's stock soared over 5% in premarket trade in the United States on Monday, hitting $51.
After declining a seat on Twitter's board, Musk made a bid to acquire the popular social media business earlier this month. The billionaire, who founded Tesla, SpaceX, and other businesses, already owns more than 9% of Twitter.
Twitter was largely expected to reject the offer and implement a limited-duration shareholders rights plan, a strategy known as the "poison pill" defense that firms employ to thwart takeover efforts like the one Twitter is facing. By making more shares accessible, poison pills make it more difficult for a potential acquirer to obtain a majority of a company's shares.
After Musk filed a statement with the Securities and Exchange Commission last week revealing that he had secured $46.5 billion in cash for the proposal, including backing from Morgan Stanley, Twitter allegedly warmed up to the idea of a possible acquisition.
A request for comment from Twitter was not returned.
Musk, who has 83 million followers on Twitter, is a frequent user as well as a vocal critic. He has publicly questioned Twitter's future, polling his followers on potential changes to the firm on many occasions.
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022