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Twitter set to accept Musk’s $43 billion offer: sources | Business section

NEW YORK (Reuters) — Twitter Inc is set to accept a sale to Elon Musk for around $43 billion in cash, the price the Tesla CEO has called his “best and final” offer for the social media company, people have said. close to the file.

Twitter could announce the $54.20-per-share deal later Monday after its board of directors meets to recommend the deal to Twitter shareholders, the sources said, adding that it’s still possible that the deal falls apart at the last minute.

Musk, the richest person in the world according to Forbes, is negotiating to buy Twitter personally and Tesla is not involved in the deal.

Twitter has so far been unable to secure a “go-shop” provision as part of its deal with Musk that would allow it to solicit other offers once the deal is signed, the sources said. . Still, Twitter would be allowed to accept an offer from another party by paying Musk a severance fee, the sources added.

The sources requested anonymity as the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.

Twitter shares rose 4.5% in premarket trading in New York to $51.15.

Musk, a prolific user of Twitter, said it needed to be private to grow into a true platform for free speech.

The 50-year-old entrepreneur, who is also CEO of rocket developer SpaceX, said he wanted to fight trolls on Twitter and proposed changes to the premium subscription service Twitter Blue, including reducing its price and prohibiting advertising.

The billionaire, an outspoken cryptocurrency advocate, also suggested adding dogecoin as a payment option on Twitter.

He said Twitter’s current management team was unable to bring the company’s stock to its offering price on its own, but refrained from saying it needed to be replaced.

“The company will not thrive or serve this societal imperative in its current form,” Musk said in his offer letter last week.

Until Musk revealed a stake in Twitter in April, the company’s shares had fallen about 10% since Parag Agrawal took over as CEO from founder Jack Dorsey in late November.

Quick turnaround

The deal, if it goes through, will come just four days after Musk unveiled a financial package to back the acquisition.

This has led Twitter’s board to take its offer more seriously and many shareholders to ask the company not to pass up the opportunity for a deal, Reuters reported on Sunday. Before Musk revealed the financial package, Twitter’s board had to reject the offer, sources said.

The sale would represent an admission by Twitter that Agrawal is not making enough traction to make the company more profitable, despite being on track to meet the ambitious financial goals the company has set for 2023. Twitter shares were trading higher than Musk’s offer price as recently as November. .

Musk unveiled plans to buy Twitter on April 14 and take it private through an equity and debt financing package. Wall Street’s biggest lenders, with the exception of those advising Twitter, have all pledged to provide debt financing.

Musk’s negotiation tactic – make an offer and stick to it – resembles the way another billionaire, Warren Buffett, negotiates acquisitions. Musk didn’t provide any funding details when first disclosing his bid for Twitter, making the market skeptical of his prospects.