Tech

Twitter has amassed 3% after reports that it could accept Mask’s application on Monday

The official profile of Ilona Maska on the social network Twitter. Billionaire Elon Musk bought 9% of Twitter, investing $ 3 billion.

Raphael Enrique Lightrocket | Getty Images

Shares of Twitter jumped more than 3% due to reports that the company is approaching a deal with Elon Musk, which may be announced on Monday.

Earlier this month, Musk offered to buy Twitter for $ 54.20 per share, or about $ 43 billion. The social media company was expected to drop the deal and took a so-called poison pill to repel a potential hostile takeover. However, Twitter became more receptive to the bid after Musk revealed he had received $ 46.5 billion in funding.

The company’s board met on Sunday to discuss Mask’s funding plan for its proposed proposal, a source close to the situation told CNBC.

Bloomberg and Reuters report that the parties may reach an agreement as early as Monday. The council held talks with Mask in the early hours of Monday, according to The New York Times.

It is unclear what the final deal might look like, and Reuters reported Monday that the deal could still fall apart. According to Reuters, Twitter has not yet been able to reach a sale agreement that would allow it to look for other offers after signing the deal. The company can still accept another application if Musk pays the break-up fee, it added.

Wall Street is likely to take the news of Twitter’s openness to the bid “as the beginning of the end for Twitter as a public company, and Musk is probably now on the way to acquiring the company if the second contender doesn’t appear in the mix,” Wedbush analyst said. Said Dan Ives in a Sunday note.

“I think they almost should” take the deal, Jim Kramer of CNBC said Monday on “Scream in the Street.” Twitter is due to report earnings for the first quarter on Thursday, and some, including Kramer, expect the company to release disappointing results.

“Blocking a deal today or tomorrow may seem pretty appealing to those who know they have bad news,” Gordon Haskett said in a note Monday.

Twitter declined to comment. In the morning, shares of Tesla fell more than 1%.

The CEO of Tesla and SpaceX was in tears to acquire Twitter. He accumulated more than 9% of the shares and rejected an offer to join the board before applying to the company.

Musk, an avid Twitter user, argues that it needs to be “transformed” into a private company so that it can become a forum for freedom of speech. He too said that the interests of Twitter board members “just don’t coincide with shareholders” and that the board “barely owns shares” of the company.



Twitter has amassed 3% after reports that it could accept Mask’s application on Monday

Source link Twitter has amassed 3% after reports that it could accept Mask’s application on Monday

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