Twitter is reportedly close to accepting Tesla CEO Elon Musk’s $43 billion buyout offer to take the social media company private.
Twitter may announce the $54.20-per-share deal at some point on Monday, after its board meets to recommend the transaction to Twitter shareholders, sources familiar with the matter told Reuters, adding it is still possible that the deal could collapse at the last minute.
The social media company was reportedly unable to secure so far a “go-shop” provision under its agreement with Musk that would allow it to solicit other bids once the deal is signed, the sources said.
Nonetheless, Twitter is still allowed to accept an offer from another party by paying Musk a break-up fee, added the sources, who requested anonymity, given that the matter is confidential.
Previously, Twitter appeared to be opposed to Musk’s takeover bid with the company laying out a “poison pill” defense to block the Tesla CEO’s offer. But Musk later detailed financing plans to secure $46.5 billion in funds to purchase Twitter, which may have forced Twitter’s board to reconsider his offer.
Dan Ives, an analyst at Wedbush, told clients that Wall Street would see news of the deal as “the beginning of the end for Twitter as a public company, with Musk likely now on a path to acquire the company unless a second bidder comes into the mix.”
“The board could officially reject Musk’s bid and then a hostile tender offer will likely begin this week, putting further pressure on the board with their back against the wall in this Game of Thrones battle for Twitter,” Ives said.
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