Featured Image Credit: Credit: Alamy
Topics: Elon Musk, Twitter, Technology
Cameron Frew
Twitter is nearing a deal to sell itself to Elon Musk, according to a new report.
It all started when the Tesla and SpaceX chief became the social media firm's largest single stakeholder with a 9.2 percent stake, sparking its own controversy with regards to withholding his public disclosure after passing five percent.
As speculation swirled around Musk - particularly amid his polling on edit buttons and broadening Twitter's paid-for service in the US - he declined to join the board of directors. He has a better idea: he wants to buy the whole thing.
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Musk's initial offer stood at $41.39 billion (£31bn). This equated to $54.20 (£41) per share, marking a 38 percent premium to Twitter's closing price on 1 April - the last trading day before his stake was publicly disclosed.
In a letter to the company, Musk wrote: "Since making my investment I now realise the company will neither thrive nor serve this societal imperative in its current form.
"Twitter needs to be transformed as a private company. My offer is my best and final offer and if it is not accepted, I would need to reconsider my position as a shareholder."
Just last week, Musk revealed he'd secured $46.5bn (£35.6bn) in financing to fund a possible bid for the social media giant. He's also raising a further $12.5bn (£9.81bn) through a margin loan secured against his shares in Tesla, The Guardian reports.
Now, according to The New York Times, Twitter's board has been negotiating with Musk into the early hours of this morning (25 April), and may be nearing a deal to complete the sale.
According to two people close to the negotiations, who've remained anonymous, both sides have been discussing the timeline of the takeover and any fees which would result from the sale falling apart near the finishing line.
Twitter's board of directors reportedly met over the weekend to consider Musk's offer. While there had been chatter of a 'poison pill' to deter the world's richest man from going through with the takeover, allowing existing shareholders to buys stock at a discount to dilute the shares of new investors.
Musk securing the financing, however, has made the offer a more serious prospect.
It should be noted, the negotiations are still 'fast-moving' and while there's been significant process, it's unlikely we'll see Musk announced as the new owner of Twitter promptly.
While Twitter has yet to comment on the report, the company earlier said the board was 'continuing to conduct a careful, comprehensive and deliberate review to determine the course of action in the best interest of the company and all Twitter stockholders'.
Twitter declined to comment when contacted by UNILAD.
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