Twitter plans to accept Elon Musk’s $43 billion bid to purchase the company as early as Monday.
The Wall Street Journal reports that the two parties “worked through the night” in order to finalize the details. Musk submitted his first proposal on April 14th, describing it as his “best and last offer.” The stock will be priced at $54.20 per share under the sale.
Early reports suggested that Twitter had rejected the offer and that the company had even implemented a “poison pill” to thwart a hostile takeover.
According to the Journal, Musk intends to invest $21 billion of his own money. He’ll almost certainly have to sell shares in his other companies, including Tesla and SpaceX, to get the funding. Investment banks will provide the remaining $25 billion.
Reuters reported that Twitter has “not been able to secure a ‘go-shop’ provision” in its agreement with Musk. Once a deal with Musk is completed, the company would be able to “solicit other bids,” but again, that clause is not already included.
Elon Musk has not specified how he intends to make Twitter more profitable, but he has revealed some of the improvements he intends to do. In his April 13th offer letter, Musk wrote to Bret Taylor, the chairman of Twitter’s board of directors:
“I invested in Twitter as I believe in its potential to be the platform for free speech around the globe, and I believe free speech is a societal imperative for a functioning democracy.
“However, since making my investment I now realize the company will neither thrive nor serve this societal imperative in its current form. Twitter needs to be transformed as a private company.”