Shares of Twitter added to recent gains and jumped over 3% amid reports that the social media company is in advanced talks to sell itself to Tesla billionaire Elon Musk, with a deal expected to be announced as soon as today.
Twitter’s stock moved higher again on Monday, rising 3.5% as investors cheered reports that the company’s board of directors have been negotiating with Musk over his buyout offer.
Twitter’s board is considering accepting Musk’s original offer of $54.20 per share in cash, which values the company at around $43 billion, and looks to be nearing a deal to sell the company, several publications have reported.
Twitter’s board reportedly met on Sunday to negotiate Musk’s offer and a formal announcement about a deal is now expected by later on Monday, the Wall Street Journal reported.
Twitter was until recently expected to decline Musk’s offer to buy the company and take it private, having adopted a so-called poison pill to fend off any hostile takeover.
But the board now appears to be more receptive to Musk’s acquisition offer, especially after the Tesla billionaire revealed in an SEC filing last week that he had secured $46.5 billion in financing.
The latest reports may be a “turning point” and “likely came from the Board’s realization that an alternative bid from a ‘white knight’ may be difficult to come by, especially following the decline in asset prices from social media companies in recent weeks/ months,” says Angelo Zino, senior equity analyst at CFRA.