Twitter is an interesting universe on its own. Most of us living in the real world know that Twitter is not real life, but I think many of us acknowledge that what happens there can many times affect real life. Elon Musk is an avid Twitter user, and he’s been on the platform since 2009.
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The ongoing tensions between political factions on the platform have brought us to where we are today. Musk has not been happy with the company’s direction in terms of speech and politics. So he promptly purchased stock to become the largest shareholder in the company. He was then offered a seat on the board, but he rejected that due to restrictions on the amount of stock he could purchase.
This brought us to his end game plan, offering $43 billion to buy Twitter outright. Initially, the company said it would not accept such an offer, but Musk managed to get more funding to make a new offer. The company held a meeting over the weekend, and the news this morning is that it is set to accept Musk’s buyout offer.
Twitter may announce the $54.20-per-share deal later on Monday once its board has met to recommend the transaction to Twitter shareholders, the sources said. It is always possible that the deal collapses at the last minute, the sources added.
Musk, the world’s richest person according to a tally by Forbes, is negotiating to buy Twitter in a personal capacity and Tesla is not involved in the deal.
Twitter has not been 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 sources said. Still, Twitter would be allowed to accept an offer from another party by paying Musk a break-up fee, the sources added.
The sources requested anonymity because the matter is confidential. Twitter and Musk did not immediately respond to requests for comment.
Twitter shares were up 4.5% in pre-market trading in New York on Monday at $51.15.
Musk has said Twitter needs to be taken private to grow and become a genuine platform for free speech.
Reuters
So fasten your seatbelts, Twitterverse!
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