Twitter would be close to reaching an agreement for Elon Musk to buy it

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Twitter would be close to reaching an agreement for Elon Musk to buy it

(CNN) –– Apparently, Twitter would be close to reaching an agreement so that Elon Musk can buy it, according to reports New York Times and other means. A development that comes 11 days after the CEO of Tesla and SpaceX shocked the industry by offering to buy the company in a deal that values ​​it at more than $41 billion.

The deal could be closed as soon as this Monday, according to the newspaper The Wall Street Journal. Twitter declined to comment on the news reports.

Reports that a deal is imminent come after Musk revealed last week that he had secured $46.5 billion in financing to acquire the company. Twitter’s board of directors met Sunday to consider Musk’s offer to buy all of the company’s shares, which he does not currently own, for $54.2 each, a source familiar with the deal confirmed to CNN. The source noted that discussions about Musk’s offer are serious.

The potential sale deal caps a dizzying news cycle that began less than a month ago, when Musk revealed he had taken a 9.1% stake in the company. And the requests for changes on the social media platform began to increase.

Questions about whether Musk could actually finance his acquisition of Twitter arose in the days after his public offering. Especially after he said in an interview on the day of his offer: “I’m not sure he can really acquire [Twitter]”.

Twitter stock price after effect of Elon Musk

Twitter board puts defense mechanism against Elon Musk 1:17

Twitter shares were trading noticeably below the offer price, in a possible sign of investor skepticism about the deal. However, on Monday morning, the stock was up nearly 5% on the reports, topping $51 a share.

If approved, the deal would put the world’s richest man in charge of one of the world’s most influential social media platforms. Musk has repeatedly emphasized in recent days that his goal is to bolster free speech on the platform. Also, work to “unlock” the “extraordinary potential” of Twitter.

“I invested in Twitter because I believe in its potential to be the platform for freedom of expression around the world. And I believe that freedom of expression is a social imperative for a functioning democracy,” Musk said in his offer letter to Twitter. . “However, since making my investment, I now realize that the company will not prosper and meet this social imperative in its current form. Twitter must be transformed into a private company,” he added.

In the days after Musk’s offer, Twitter’s board of directors implemented a so-called “poison pill,” which would make it more difficult for the billionaire to acquire the company without its approval. There were also questions about whether the company would try to find another buyer.

Musk’s possible impact on Twitter 2:43

However, CFRA principal equity analyst Angelo Zino said on Monday that Twitter’s board taking Musk’s offer more seriously may be explained by “the board realizing that an alternative offer (. ..) may be hard to come by, especially after the drop in asset prices of social media companies in recent weeks/months.”

CNN’s Brian Stelter contributed to this report.

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