Twitter shares rose Monday following reports that the company is gearing up to accept a takeover bid by Elon Musk. This is a dramatic change after the board of directors organized the “poison pill” to prevent bids buyout the unfriendly of the billionaire businessman.
The deal, which media including the Wall Street Journal and the New York Times reported could announce today, would see the Tesla boss take control of the influential social media site and the mouthpiece of the former US president. Donald Trump.
The AFP news agency reported representatives from Twitter and Elon Musk were working late Sunday to hammer out the deal, which the report said could still fail. There was no immediate comment from Twitter.
Twitter CEO Parag Agrawal and Musk did not comment, although both have used the site to post developments about the deal.
Musk had a large stake in the company earlier this month, before making a formal purchase offer.
“I think right now, a deal, judging by how smooth it has been so far, will be reached,” said Dane Ives, senior equity analyst at Wedbush Securities, in an interview on CNBC.
Musk last week raised about $46.5 billion for this Twitter funding, and Ives said “The board of directors couldn’t find another savior, a second bidder. It’s cornering them, and they need to come to the negotiating table.”
Around 1435 GMT, Twitter shares were up 3.2 percent. [my/jm]
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