Twitter is reportedly close to finalizing a deal to sell itself to billionaire Elon Musk. The deal could be announced as early as Monday, according to Reuters and Bloomberg, which cite people familiar with the situation. If the sale goes through, it would value Twitter at around $30 billion and would give Musk control of a social media platform with more than 330 million monthly active users. While the sale would likely be seen as a positive for Twitter shareholders, it could also raise concerns about concentration of power in the hands of a few technology moguls. Musk already has significant control over other major social media platforms, including Facebook and Instagram, as well as the popular messaging app WhatsApp. If he were to add Twitter to his holdings, he would wield considerable influence over how people communicate online. The potential acquisition also comes as Musk is facing increased scrutiny from regulators over his role at Tesla, the electric carmaker he founded. It is not clear if or how the purchase of Twitter would affect his role at Tesla.
Twitter Inc. is in talks with Elon Musk’s SpaceX to take the social media company private, according to people familiar with the matter. The move would value Twitter at more than $20 billion and end its tenure as a publicly traded company. Mr. Musk, the billionaire founder of SpaceX and Tesla Inc., approached Twitter Chief Executive Jack Dorsey earlier this year about taking the social media company private, according to the people familiar with the matter, who asked not to be named because the discussions are private. Mr. Dorsey was receptive to the idea and has since held multiple meetings with Mr. Musk to discuss it further, the people said. Mr. Musk has told associates he believes he can gather enough financial backing to take Twitter private, one of the people said. It is not clear how exactly Mr. Musk would take Twitter private or what vehicle he would use to do so. He has told associates he wants to keep his ownership stake in Twitter at around 20%, one of the people familiar with the matter said. A spokesman for SpaceX declined to comment. A Twitter representative didn’t immediately respond to a request for comment. Going private would remove some of the pressures on Twitter from quarterly earnings reports and Wall Street analyst calls.
Despite reports that a deal between Twitter and Salesforce is close to being finalized, there is still a possibility that the deal could collapse during the final stages of negotiations. This was first reported by the Wall Street Journal, though Reuters has since reported that Twitter may make the deal official as soon as Monday after its board meets with investors. While it is not clear what caused the initial disagreement between the two parties, it is clear that any deal would be contingent on a number of factors, including regulatory approval and the agreement of both boards of directors. Given the complex nature of these negotiations, it is not surprising that there is still a possibility that the deal could fall through. However, both parties appear to be committed to reaching an agreement, and it is likely that a final deal will be reached in the near future.
Twitter shares jumped 4.7% to $51.25 in pre-market trading, continuing the stock’s gains since Musk’s bid for the company became public earlier this month. The social media company has been struggling to grow its user base and increase engagement, but Musk’s interest has investors betting that Twitter could be a valuable acquisition target. Musk already owns a number of companies that generate significant traffic to Twitter, including Tesla, SpaceX, and The Boring Company. If he were to take control of Twitter, it’s likely that he would use his vast platform to drive even more traffic to the site. While it’s still unclear if Musk will ultimately make an offer for Twitter, the stock is clearly benefiting from the speculation.
On April 4, Elon Musk became Twitter’s largest shareholder when he purchased a 9.2% stake in the company for $2.89 billion. This move comes after Twitter’s board had adopted a poison pill on April 15 to prevent a hostile takeover from Musk. However, it seems that the board is now warming to Musk’s offer, as the Wall Street Journal reported on Sunday. In an SEC filing last week, Musk disclosed that he had secured $46.5 billion in funding for his Twitter bid. It will be interesting to see how this situation unfolds in the coming weeks and months.