Twitter Inc is reportedly set to sell the company to Elon Musk for approximately $43 billion in cash, which the CEO of Tesla Inc has described as his “best and final” offer for the social media company.
According to Reuters, Twitter may announce the $54.20-per-share deal later on Monday, April 25, after its board meets to recommend the transaction to Twitter shareholders.
“There is always the possibility that the deal will fall through at the last minute,” the sources added.
Tesla CEO Elon Musk, the world’s richest person, is negotiating to buy Twitter on his own behalf, and his company is not involved in the transaction.
According to the sources, Twitter has not been able to secure a ‘go-shop’ provision in its agreement with Musk, which would allow it to solicit other bids once the deal is signed.
Nonetheless, Twitter would be permitted to accept an offer from a third party by paying Musk a break-up fee, according to the sources.
In pre-market trading in New York on Monday, April 25, Twitter shares were up 4.5 percent to $51.15.
Musk has stated that Twitter must be made private in order to grow and become a genuine platform for free speech.
If the deal goes through, it will come just four days after Musk announced a financing package to support the acquisition.