Microblogging and social networking company, Twitter, is in serious talks to sell the company to Tesla CEO, Elon Musk, who made an unsolicited offer to buy the platform.
The New York Times reported Monday that the company is nearing a deal to sell itself to Mr Musk, quoting sources who are familiar with the discussion.
The development came days after Twitter moved to defend itself against Mr Musk’s hostile takeover bid, announcing a plan that would allow shareholders to purchase additional stock.
The sources who spoke to the newspaper on condition of anonymity said Twitter’s board was negotiating with Mr Musk into the early hours of Monday after he began lining up $46.5 billion in financing for the offer last week.
The sources said the two parties were discussing details including a timeline to close any potential deal and any fees that would be paid if an agreement were signed and then fell apart.
According to the paper, the situation involving Twitter and Mr Musk remained fluid and fast-moving.
Mr Musk recently questioned Twitter’s adherence to free speech principles and had asked his followers if a new platform was needed.
On Monday, after news of his negotiations with Twitter broke, he tweeted: “I hope that even my worst critics remain on Twitter, because that is what free speech means.”
Hostile Takeover
Tesla CEO Elon Musk had in early April acquired a 9.2 per cent stake in Twitter, making him its largest shareholder.
Mr Musk owns 73,486,938 shares of Twitter, which represents a 9.2 per cent stake in the company, according to the US Securities and Exchange Commission (SEC)13G filing.
A day after Mr Musk acquired a 9.2 per cent stake in the company, the company subsequently announced it was appointing him to its board but Mr Musk declined the offer.
On April 14, Mr Musk said he had offered to buy 100 per cent of Twitter for $54.20 per share in cash, a 54 per cent premium over the day before he began investing in Twitter and a 38 per cent premium over the day before his investment was publicly announced, according to the US Securities and Exchange Commission (SEC)13D/A filing.
Following his $43 billion offer to buy the company, Twitter’s board of directors elected a limited duration shareholder rights plan, also called a “poison pill” to repel a potential hostile takeover.
“The Rights Plan will reduce the likelihood that any entity, person or group gains control of Twitter through open market accumulation without paying all shareholders an appropriate control premium,” Twitter said in a statement on April 15, 2022.
