© Reuters. Twitter (TWTR) and Elon Musk in Advanced Talks Over a Sale That Could Be Finalized As Soon As This Week – Report
Twitter (NYSE:) is holding talks to probably promoting itself to Elon Musk in a deal that might be introduced this week, lower than two weeks after Tesla (NASDAQ:) CEO put ahead his $43 billion bid to purchase the social media platform, based on the Wall Street Journal.
Twitter and Musk reportedly met on Sunday to barter and rapidly made progress, nevertheless, there may be nonetheless no assure that the deal shall be finalized, the report added.
It was anticipated that the social media firm will reject Musk’s bid after it adopted a “poison pill” to forestall him from elevating his stake additional. However, after Musk not too long ago mentioned that he has $46.5 billion in financing Twitter made a u-turn and agreed to barter a possible deal.
The billionaire made it clear to Twitter Chairman Bret Taylor that he won’t change his bid anymore, saying that his $54.20-a-share provide is “best and final.” While the talks have made sure progress, Twitter and Musk nonetheless have some points to debate comparable to what would Musk pay in case the deal falls aside earlier than being accomplished.
Twitter is about to report its Q1 monetary report on Thursday and is anticipated to have its say on the provide then.
Twitter’s sudden resolution to open its door to negotiations comes after Musk privately met with a number of shareholders of the social media firm to speak about his provide, repeatedly saying that the board has to make a “yes-or-no” resolution, based on the WSJ.
Lauri Brunner, a Portfolio Manager at Thrivent Asset Management that holds a roughly 0.4% stake in Twitter, believes Musk is a proficient operator with an “established track record at Tesla,” she mentioned.
“He is the catalyst to deliver strong operating performance at Twitter,” Brunner mentioned.
New Street Research analyst Blair Levin is skeptical that huge tech firms will rival Musk in his makes an attempt to take Twitter non-public.
Levin says that each Alphabet (NASDAQ:) and Meta Platforms (NASDAQ:) would “very likely” face a grievance from the DoJ and FTC in case they bid for Twitter. Microsoft (NASDAQ:) and Amazon (NASDAQ:) are in the same place, whereas Apple’s (NASDAQ:) involvement would doubtless take advantage of sense from the regulatory viewpoint.
“Apple does not control data or utilize advertising in the same way as the others and therefore would probably be allowed to purchase Twitter. But we are highly confident Apple would regard the likely headaches to follow as a consumer brand version of a poison pill,” Levin mentioned in a consumer notice.
Wedbush analyst Daniel Ives says that Twitter was pressured to return to the bargaining desk after being left “empty handed from private equity circles staring at a hostile tender offer process.”
“The Street will read this news today as the beginning of the end for Twitter as a public company with Musk likely now on a path to acquire the company unless a second bidder comes into the mix,” Ives added.
On implications for Tesla, Ives doesn’t imagine that the Twitter provide “will result in a major sale of Musk’s Tesla shares, instead being used as pledged shares for the loans obtained by Musk.”
Twitter inventory value is up 0.5% in pre-open Monday.
By Senad Karaahmetovic