Twitter 'Inching Closer' To Finalise US$46.5 Billion Deal with Elon Musk
Despite internal disagreements, the Twitter board is reportedly inching towards finalising the hostile takeover deal worth US$46.5bn (billion) made by Tesla CEO Elon Musk, and an announcement was expected as early as Monday (US time).
The Washington Post reported, citing people close to the matter, that Twitter is in discussions to 'sell itself to Elon Musk' and could 'finalise a deal as soon as this week'.
"The two sides met Sunday to discuss Musk's proposal and were making progress, though still had issues to hash out, the people said. There is no guarantee they will reach a deal," the report said.
The New York Times also reported that Twitter's board is seriously considering Mr Musk's offer to buy the company.
Mr Musk's initial bid of about $43bn was seen as undervaluing the company significantly.
The Tesla and SpaceX CEO last month further revealed his Twitter takeover plan that will see US$25.5bn in loans and US$21bn in personal equity—taking the final bid to US$46.5bn.
In a fresh filing with the US Securities and Exchange Commission (SEC), Musk said that the funding is provided through two debt commitment letters from Morgan Stanley Senior Funding, in which the bank commits to offering a series of loans worth $25.5 billion.
The remaining $21 billion will be managed by Mr Musk on his own.
The filing had made it clear that Twitter has not formally responded to Mr Musk's offer.
A Twitter spokesperson said the company has received Musk's offer and said it would conduct a "careful, comprehensive" review.
Mr Musk, who had disclosed ownership in Twitter in a filing with the SEC earlier this month, has a 9.1% ownership stake in the platform, which is worth over US$3bn currently.
The billionaire is willing to pay US$54.20 per share to buy 100% of the company.
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2 months ago
if deal is finalised India may be out of platform in Musk implements 100 his free speech absolutism
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