Twitter is close to selling to Elon Musk after he put together a $46.5 billion funding package to acquire the social media platform.
The company is close to agreeing to the offer price of $54.20 a share, and an announcement could be imminent on a deal valuing the business at $43 billion.
The Twitter board had initially shown that it opposed Musk taking over the company, and adopted a poison pill defense against any unwanted takeover approach. But it apparently has changed its mind after Musk, the richest man in the world, filed details of funding his bid.
Last week the takeover seemed much more hostile. Musk flagged a potential hostile bid after he confirmed he was considering a tender officer for the shares in Twitter that he does not own, which would mean skirting around Twitter’s board.
A hostile bid remains an option for Musk to take over if the official talks fail.
Twitter deciding to engage with Musk did not necessarily mean that it would accept the offer. But it did signal that Twitter was exploring whether a sale was possible.
Musk said the price is his “best and final” offer for the social media company. His tactic to make one offer and stick with it resembles how Warren Buffett, a fellow billionaire, negotiates acquisitions. The market was skeptical about Musk’s profits though because he did not provide any financing details when he first disclosed his offer.
It is still possible for the deal to collapse.
Musk is a prolific Twitter user, and has said that it needs to go private in order to grow and be a platform for “free speech.”
If it does sell, it may signal that Agrawal is not making enough traction as its CEO to make the company more profitable, despite being on track to meet financial goals that the company set for 2023.
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