Twitter Inc is set to approve the sale of Elon Musk for an estimated $ 43 billion, a price that Tesla CEO called "the best and last thing" of the communications company, people familiar with the matter say.
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Musk, the richest man in the world, is negotiating the purchase of Twitter as personal and Tesla is not involved in the deal.
Twitter has so far not been able to find a 'store' offer under its agreement with Musk which will allow it to ask
for more bids once the agreement is signed, sources said. However, Twitter will be allowed to accept a gift from another party by paying Musk a split fee, sources added.
for more bids once the agreement is signed, sources said. However, Twitter will be allowed to accept a gift from another party by paying Musk a split fee, sources added.
Sources have requested that their name be withheld because the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.
Twitter shares had risen 4.5% in the New York stock market at $ 51.15.
Musk, a full-time Twitter user, said he needed to be taken in secret to grow and become a real platform for free speech.
The 50-year-old businessman, who is also the CEO of rocket developer SpaceX, said he wanted to fight the trolls on Twitter and propose changes to the Twitter Blue premium subscription service, including price reductions and ban advertising.
The billionaire, a voice spokesman for cryptocurrencies, also suggested adding dogecoin as a payment method on Twitter.
He said the current Twitter leadership team could not get the company's stock at its own sales price, but declined to say it needed to be replaced.
"The company will not succeed or use this public service the way it is," Musk said in his letter of application last week.
To the point where Musk unveiled the post on Twitter in April, the company's shares have dropped by almost 10% since Parag Agrawal took over as CEO from founder Jack Dorsey in late November.
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The agreement, if possible, will come four days after Musk unveiled the financial package to fund the acquisition.
This has led the Twitter board to take his proposal seriously and many shareholders have asked the company not to allow the contract opportunity to escape, Reuters reported on Sunday. Before Musk unveiled the financial package, the Twitter board was expected to reject the request, sources said.
The sale will represent Twitter's acknowledgment that Agrawal is not doing enough to make the company more profitable, despite having the potential to meet the company's financial targets set for 2023. Twitter shares were trading above Musk's offering price recently in November. .
Musk revealed his intention to buy Twitter on April 14 and keep it a secret using a financial package that includes equity and debt. Wall Street's major lenders, with the exception of Twitter advisors, are all committed to providing debt financing.
Musk's tactics of negotiation - making one promise and sticking to it - are similar to the way another millionaire, Warren Buffett, negotiated a deal. Musk did not provide financial details when he first revealed his gift on Twitter, leaving the market skeptical about its prospects.
