Shares of Twitter Inc (NYES: TWTR) are up nearly 7.0% this morning on reports the social media and microblogging company could soon accept the takeover proposal from Elon Musk.
Musk has valued Twitter at $43 billion
Musk is willing to buy Twitter Inc for $54.20 per share that values the San Francisco-headquartered company at $43 billion.
Twitter resorted to “poison pill” last week to avoid a hostile takeover but opened itself for a deal after Tesla CEO secured $46.5 billion in funding for his bid. The NYSE-listed company is yet to make an official comment.
Twitter’s board sat down to discuss the latest development on Sunday, a source that preferred to remain anonymous told CNBC on Monday. A deal with Musk is now expected as soon as today.
Dan Ives reacts to the news
According to Wedbush Securities’ Dan Ives, a lack of a second bidder leaves Twitter with hardly an option other than striking a deal with Elon Musk. On CNBC’s “Squawk Box”, he said:
Deal seems on a path to get done. With financing, threat of a tender offer, and lack of a second bidder, Twitter’s board had its back against the wall. They had to come to negotiation and in the next 24 hours, Musk will be successful in his bid for Twitter.
Twitter is scheduled to report its quarterly results later this week. Tesla shares are down nearly 2.0% on the news in premarket.
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