Twitter is reportedly set to accept Elon Musk’s bid to buy the company for $43 billion, which the Tesla CEO called his “best and final” offer.
According to a source familiar with the situation, “Twitter may announce the $54.20-per-share deal later on Monday once its board has met to recommend the transaction to Twitter shareholders,” reported Reuters.
Even with the talks, it’s possible the deal could still fall apart, the source added.
After the report was released, shares of Twitter soared by more than 5% in premarket trading.
Reuters reported that Twitter was not able “to secure so far a ‘go-shop’ provision under its agreement with Musk that would allow it to solicit other bids once the deal is signed”.
The company could still accept an offer from another party by paying Musk a break-up fee, the source explained.
Musk has said he wishes to take Twitter private so it can grow and become a platform for free speech. He has also proposed changes to the Twitter Blue premium subscription service and wants to ban advertising.
“The company will neither thrive nor serve this societal imperative in its current form,” Musk said in his offer.
Twitter’s board was expected to reject the bid, but Musk recently revealed the financing package to back his offer.
Musk’s outreach forced the company’s board of directors to seriously consider his offer and shareholders urged it not to let the opportunity for a deal slip away.
The Securities and Exchange Commission is currently investigating whether Musk violated rules by not disclosing that he had purchased shares of Twitter while amassing his 9.2% stake.
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