Twitter share prices have jumped about three percent in early trading following reports that the social media giant is considering accepting a $43 billion takeover by Tesla CEO Elon Musk.
CNBC reports that Twitter shares have jumped about three percent following reports that the company is reconsidering a takeover bid of $43 billion by Tesla CEO Elon Musk. Breitbart News reported today that talks between executives at Twitter and Tesla CEO Elon Musk have begun again as the company reconsiders Musk’s $43 billion takeover offer. Musk and the Twitter board reportedly met on Sunday to discuss the deal, according to sources with knowledge of the meeting. It is believed that an official agreement may be reached this week. Twitter shares are trading at $50.45 as of 10:48 EST, while Musk’s bid for the company is $54.20 per share.
Negotiations between Musk and the board reportedly went on into the early hours of Monday and Twitter was nearing a deal with Musk, according to the New York Times’ sources. Dan Ives, an analyst at Wedbush, told clients in a note that Wall Street would see news of the deal as “the beginning of the end for Twitter as a public company, with Musk likely now on a path to acquire the company unless a second bidder comes into the mix.”
Twitter is expected to report first-quarter earnings on Thursday, and many are expecting the company’s results to be disappointing. Gordon Haskett Research Investors said in a note on Monday: “Locking a deal up today or tomorrow may sound pretty appealing for someone who knows they are in possession of bad news.”
Twitter is currently trading a 50.78 per share, a 3.76 percent increase in a single day, at the time of the writing of this article. Whether a deal will be reached between the social media giant and Musk remains to be seen, but many sources appear confident that we will know more this week.
Read more at CNBC here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship. Follow him on Twitter @LucasNolan or contact via secure email at the address lucasnolan@protonmail.com