Elon Musk’s official profile on the social network Twitter. Billionaire Elon Musk bought 9% of Twitter, a $3 billion investment.
Rafael Henrique | Light Rocket | Getty Images
Twitter shares rose more than 4% in premarket after reports that the company is nearing a deal with Elon Musk that could be announced as early as Monday.
Musk offered earlier this month to buy Twitter for $54.20 per share, or about $43 billion. The social media company had been expected to turn down a deal and had introduced what it called a “poison pill” to stave off a potential hostile takeover. However, Twitter became more receptive to an offer after Musk announced that he had secured $46.5 billion in funding.
Twitter’s board of directors met Sunday to discuss Musk’s funding plan for his proposed bid, a source close to the situation told CNBC.
Bloomberg and Reuters reported that both sides could reach an agreement as early as Monday. According to the New York Times, the board negotiated with Musk until the early hours of Monday morning.
It’s unclear what a final deal might look like, and Reuters reported Monday that an agreement could still fall apart. According to Reuters, Twitter has yet to secure a “go-shop” agreement that would allow it to scout for other offers once an agreement is signed. The company could still accept another offer if Musk pays a breakup fee, it added.
Wall Street would likely take news of Twitter’s openness to an offer “as the beginning of the end for Twitter as a public company, with Musk now likely on track to acquire the company unless a second bidder comes along.” ‘ Wedbush analyst Dan Ives said in a Sunday note.
Twitter declined to comment. Tesla shares are down about 2% premarket.
The Tesla and SpaceX CEO was in tears to take over the social media company. He had built up more than 9% stock and turned down an offer to join the board before making an offer for the company.
Musk, an avid Twitter user, has argued that in order for it to become a free speech forum, it needs to be “converted” into a private company. He is too called The interests of Twitter’s board members “simply aren’t aligned with shareholders” and the board “owns almost no stock” of the company.