June 25, 2024

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Twitter stock rose 4% after reports that it may accept Musk's offer on Monday

Twitter stock rose 4% after reports that it may accept Musk’s offer on Monday

The official profile of Elon Musk on the social network Twitter. Billionaire Elon Musk has bought 9% of Twitter, with an investment of $3 billion.

Rafael Henrique | Light Rocket | Getty Images

Twitter Shares jumped more than 4% in the pre-market amid reports that the company is close to concluding a deal with Elon Musk that could be announced as soon as Monday.

Musk earlier this month Offered to buy Twitter $54.20 per share, or about $43 billion. The social media company was expected to reject a deal and adopt the so-called “poison pill” To fend off a potential hostile takeover. However, Twitter became more receptive to bidding after Musk revealed it 46.5 billion dollars in insurance in finance.

Twitter’s board met Sunday to discuss Musk’s financing plan for his proposed show, a A source close to the situation told CNBC.

Bloomberg And Reuters She stated that the two sides could reach an agreement as soon as Monday. The board negotiated with Musk into the early hours of Monday, according to New York times.

It is unclear what the final deal might look like, and Reuters reported on Monday that the agreement could still collapse. Twitter has not been able to secure a “go-shop” agreement yet, which will allow it to search for other offers once it signs an agreement, according to Reuters. She added that the company could still accept another offer if Musk paid a breakup fee.

Wall Street was likely to see news of Twitter’s openness to bid “as the beginning of the end for Twitter as a public company with Musk likely now on the path to an acquisition of the company unless a second bidder gets into the mix,” Wedbush analyst Dan Ives said in a note Sunday.

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Twitter declined to comment. Tesla shares fell about 2% in the central market.

The Tesla And the CEO of SpaceX was struggling to acquire the social media company. he built More than 9% in stock I refused Apply to join the board before submitting a bid to the company.

Musk, an avid Twitter user, said it should be “Transformation“In private company so that it becomes a forum for freedom of expression. It is also She said The interests of Twitter board members “simply do not align with shareholders” and this board She “owns almost no shares” in the company.