Twitter and Elon Musk reach deal on buyout, to be announced today- WSJ
A few hours ago, we reported that Twitter is nearing a deal to sell itself to Tesla CEO Elon Musk for $54.20 per share in cash. Now, The Wall Street Journal (WSJ) is reporting that Twitter and Elon Musk has reached a deal on the buyout. The news is expected to be announced at the close of the market today, if not sooner, WSJ said.
Earlier today, Reuters also reported that Twitter is poised to accept Musk’s $43 billion ‘best and final’ offer. The amount is the same as what Musk originally offered to the social media company and called his ‘best and final.’
The sources also told Reuters that Twitter may announce the $43 billion deal later on Monday once its board has met to recommend the transaction to Twitter shareholders. But the sources cautioned that it is possible that the deal may collapse at the last minute. Twitter and Musk did not immediately respond to requests for comment.
Meanwhile, immediately after the report from WSJ, Musk tweeted:
“I hope that even my worst critics remain on Twitter, because that is what free speech means.”
I hope that even my worst critics remain on Twitter, because that is what free speech means
— Elon Musk (@elonmusk) April 25, 2022
On April 14, Musk offered to buy 100 percent of Twitter for $54.20 per share ($41.39 billion) in cash, according to the updated 13D filing with the Securities and Exchange Commission (SEC). The announcement came just a few days after Musk declined to join Twitter’s board after he bought a 9.2% stake in the company.
However, a day later, Twitter’s Board adopted a “poison pill” strategy to block Elon Musk from taking over the social media platform. The “poison pill,” as it’s called in corporate terms, gives Twitter’s existing shareholders time to purchase additional shares at a discount, thereby diluting Elon Musk’s ownership stake in the company.
This story is still developing. Check back for updates later.