Elon Musk Nears Deal to Buy Twitter as Soon as This Week After Board Reversal

Elon Musk is nearing a deal to buy Twitter as early as Monday, The New York Times reports.

Twitter’s board was negotiating with Musk on Monday after he announced in a filing last week that he has lined up $46.5 billion in financing to buy out the company and take it private.

“The two sides were discussing details including a timeline to close any potential deal and any fees that would be paid if an agreement were signed and then fell apart,” two sources told the Times.

The negotiations came after a Twitter board meeting on Sunday to discuss Musk’s bid.

The board, which initially appeared poised to try to block Musk’s acquisition, was apparently swayed by Musk’s ability to line up financing for the deal.

Twitter’s stock opened 4% higher on Monday.


Musk earlier this year became Twitter’s biggest shareholder after buying up more than 9% of the company’s stock on the open market.

The company offered Musk a seat on its board of directors that came with various caveats that appeared to strike Musk the wrong way. Musk at the last minute pulled out of the deal to join the board and launched an effort to buy out the whole company at a premium of $54.20 a share.

The board of directors initially seemed likely to try to block the buyout by implementing a poison pill provision to make it difficult for Musk or any other investor to accrue enough shares to take control of the social media giant.

But Musk last week submitted a filing to the Securities and Exchange Commission showing that he had lined up enough cash to buy the company.

Musk raises big money:

Musk in his filing said that he would pay $21 billion in cash to buy Twitter while Morgan Stanley and a group of other lenders would provide $13 billion in loans and another $12.5 billion in loans against his stock in Tesla.

It’s unclear if the offer is high enough. Twitter’s stock price rose as high as $70 a share last year but has since fallen to around $48.


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