- Tesla is not participating in the sale.
- Mr. Musk had announced a funding plan to support the transaction.
According to the sources, the $54.20-per-share agreement is expected to be announced later on Monday when Twitter’s board meets to endorse the transaction to its shareholders. However, it is also possible that the agreement might fall through at the last minute. This is because Mr Musk, the world’s wealthiest person according to a count by Forbes, is negotiating to purchase Twitter personally, and Tesla is not participating in the sale.
Twitter Shares Surge
A “go-shop” option that would enable Twitter, after the contract is finalized, to seek other offers has not been secured so far under its agreement with Mr Musk, according to sources. However, insiders said that a break-up fee might still enable Twitter to accept an offer from another party. Both Twitter and Elon Musk were unavailable for instant comment.
On Monday, Twitter shares were up 4.5 percent in pre-market trade in New York at $51.15. However, for Twitter to thrive and serve as a true forum for free expression, Elon Musk has said it must be put into private hands. Just four days before, Mr. Musk had announced a funding plan to support the transaction. Consequently, the purchase became increasingly important to Twitter’s board of directors, and many shareholders urged the business not to miss out on the chance to acquire Twitter.
As a result of the proposed sale, Twitter would be admitting that, despite being on schedule to fulfil lofty financial objectives established for 2023 by its new CEO, Parag Agrawal, who assumed control of the firm in November, the company is not making enough progress toward being profitable.
