Everything seems headed for Elon Musk to buy Twitter for 43,000 million dollars. Over the weekend the talks between the parties have advanced to the point where the acquisition could close today. As reported Bloombergthat the business closes this Monday will depend on how quickly an agreement is reached in relation to the terms of the transaction.
The aforementioned report also mentions that the dialogue between Elon Musk and the members of the Twitter board continued during the early hours of today. The expectation around the possible announcement caused the price of the shares of the social network rose 6.2% before the opening of US markets; thus, it came to quote at 51.98 dollars, still below the $54.20 offered by the businessman for each one.
What was it that changed Twitter’s gaze to a possible acquisition? Details are still scarce, but Elon Musk confirming to the SEC that he had the funding to move forward with the offer would have played a key role in this story. Recall that the CEO of Tesla and SpaceX secured $46.5 billion to make the purchase offer, with the support of Morgan Stanley and other companies.
At the moment the story seems to lead to a single end: that Elon Musk gets away with it and gets his hands on Twitter. However, it is also mentioned that the negotiation could fall at the last moment.
In accordance with Reuters, Twitter has not been able to secure the option to “go shopping”; that is, being able to request other offers even after signing an agreement with Musk. However, the social network could accept a higher offer if he paid the tycoon a figure to break the existing link.
Twitter could pass into the hands of Elon Musk in the next few hours
The novel between Twitter and Elon Musk has kept us attentive and busy in recent weeks. Since the businessman acquired 9.2% of the social network — briefly being its majority shareholder — there have been many twists and turns around his plans and his hypothetical role in the company.
The tycoon was about to join the company’s board of directors, but that was finally ruled out. It is that the incorporation to the board from twitter tied Elon Musk hand and foot for any plans he might have to take over the company in a hostile way. And the subsequent formal offer for the purchase, plus the activation of the “poison pill” were nothing more than a confirmation of this.
Since then a war of egos has been unleashed between the current executives of the social network and Musk that even caused the discontent of Jack Dorsey, the founder of the firm. However, if what has happened over the weekend would be the definitive proof that both sides have abandoned their most combative positions.
It is not yet possible to assume that Elon Musk will be the next owner of Twitter, but everything indicates that this outcome will be inevitable. If everything progresses positively in the negotiations, we could have important news before the end of the day; although it is not ruled out that there will be more news on Thursday, when the social network presents the financial results of the first quarter.