Reports: Twitter Could Accept Musk’s Offer, Stocks Surge 4%

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Elon Musk Source JD Lasica | commons.wikimedia.org

Reports are emerging Elon Musk may be nearing a deal with Twitter, and an announcement could come as early as Monday.

According to Bloomberg News and Reuters negotiations with Twitter had become more amicable, after it was revealed that Musk had obtained nearly $47 billion in financing.

A source close to CNBC said the board had met on Sunday to go over details related to Musk’s bid to take over the social media company. The New York Times reported negotiations lasted into the early morning hours of Monday.

In response to this news, Twitter shares jumped 5% in Monday trading.

Initially, Twitter invoked the so-called “poison pill,” which would dilute Musk’s stock, if he were to attempt a hostile takeover. However, Musk is reportedly pursuing a tender offer, where he approaches board members and shareholders directly.

According to Reuters, “A concern that Twitter’s board is weighing is that unless it seeks to negotiate a deal with Musk, many shareholders could back him in a tender offer.”

“While the poison pill would prevent Twitter shareholders from tendering their shares, the company is worried that its negotiating hand would weaken considerably if it was shown to be going against the will of many of its investors,” Reuters report also said.

Tender offers are typically time-limited, giving approached shareholders a specific amount of time to agree to the offer presented. These types of offers are usually much higher than standard stock prices.